nice strategy. Pretty simple but requires expert level skills in drawing trend lines. Usually it is hard for many traders to draw it.

Thx for sharing.

I usually support MAs instead of yrendlines. But this one is very nice example if someone wants to understand how trendlines work. It is not just about drawing trend lines but timeframe also matters.

Originally posted by uniquetrader

Thx for sharing.

I usually support MAs instead of yrendlines. But this one is very nice example if someone wants to understand how trendlines work. It is not just about drawing trend lines but timeframe also matters.

I dun understand last line of ur comment. How does timeframe affect support and resistance line in above chart? Even if we remove the price and the time from chart, support and resistance lines can be drawn. It is about connecting points to draw a perfect line and not about price or time, I think.

Nice sharing.

I dun agree with the blue line though. This is not a very good resistance trend line. In my opinion, lower angle means better trend line. Blue line is somewhere near 70 degree. Also it is not connecting good highs and lows.

Originally posted by ironical

Nice sharing.

I dun agree with the blue line though. This is not a very good resistance trend line. In my opinion, lower angle means better trend line. Blue line is somewhere near 70 degree. Also it is not connecting good highs and lows.

I think it is very good example of trendlines. It is touching correct highs and lows. Usually if three highs or lows are connected, trend line is said to be correct. There are other parameters too. In above example price behaviour is according to trend lines drawn.

Trading with trend lines requires high skills. We cannot always assume that a specific trend line will act as either a support or resistance line because a support trend line can be a resistance trend line in future and vice versa.

That is why I prefer to use MAs to identify trend and 50 and 100 SMA to identify possible change in direction (when market is trendy). 

Originally posted by Champ

Trading with trend lines requires high skills. We cannot always assume that a specific trend line will act as either a support or resistance line because a support trend line can be a resistance trend line in future and vice versa.

That is why I prefer to use MAs to identify trend and 50 and 100 SMA to identify possible change in direction (when market is trendy). 

Yes that is true. It requires a lot of practice. MAs are a good way but they also have drawbacks. In the end it all depends on which style u prefer and understand.

After practicing trend lines and SMAs, I will prefer SMAs over trendlines. There are many times when drawing a trendline is not possible due to irregular lows and highs. 

But that doesnt mean I consider them useless as many traders trade with them very successfully.

It doesn’t matter which strategy we are operating through, it is important to apply it correctly because that’s where things are won and lost. I do it all very wisely and easily through broker like OctaFX who got brilliant educational setup along with demo contests like cTrader and Champion which got big prizes and also helps us with getting experience, so all this is very useful in how we develop any strategy. Also, there are 24/5 support present to help us with things.