Wednesday, October 4, 2023
  • Login
GoTradingAsia
  • Awards
  • Forex
  • Crypto
  • Stocks
  • Education
  • Broker Directory
  • Contact us
No Result
View All Result
GoTradingAsia
  • Awards
  • Forex
  • Crypto
  • Stocks
  • Education
  • Broker Directory
  • Contact us
No Result
View All Result
GoTradingAsia
No Result
View All Result

Ways to Use Trendlines for Trading

Lisa Ramadhani by Lisa Ramadhani
4 years ago
in Technical Analysis
Simple Exponential Weighted Moving Average

Trendlines are the main part of technical analysis and trading on charts. The correct usage of trendlines will bring you a significant profit. Conversely, using them improperly, they will be ineffective.

Improper usage of the trendline in trading will guide you to a wrong belief of price reversal like a trend has strength when the truth it does not.

To help you use trendlines effectively, here are some basic tips to use trendlines for trading.

The Basics

Trendlines’ main function is to highlight the trend. They connect swing low to swing high starting from the lowest point on the downward movement to the highest pint of the upward movement. The trend line will rise whenever the price rises.

RelatedArticle

Why Brokerage Extends over DSPPs? Pt. 3

Direct Stock Purchase Plan in Methods Pt. 2

Definition of Direct Stock Purchase Plan Pt.1

Beta Approach for Investment Worthiness, Pt. 3

You will know that the price trend upwards if the trendline connects the lows into ascending points.

Besides, you can also draw a trendline along with the individual swing highs. That way you will know the strength of each price move as well as the strength of the trend.

If the swing high falls, then the price also falls. If you connect the highs during this period, then, you will get a descending trendline that reflects the downward trend.

Multiple Trendlines

Normally, you will encounter more than a single trendline. You can draw multiple trendlines that show the price movement of various periods of time.

Price cannot go on the vertical rise or fall for a long time, thus, trendlines normally have a short life. Consequently, draw trendlines every time you have the chance to spot the overall trend.

The opportunities for you to buy or go long usually occur when a short-term downtrend crosses the overall ascending trend. On the other hand, you get the selling or shorting opportunities when a short-term uptrend crosses the overall descending trend.

Adjusting Trendlines

After you draw trendlines, you have to adjust them since prices do not move in the same fashion and trendline moves along time and price.

Thus, you need to adjust them for any acceleration or deceleration of the trend. You have to consider the price movement whenever you want to adjust the trendline.

For instance, the trend does not mean end when the price moves below the trendline during an uptrend. Sometimes, the line just needs to be adjusted.

Tags: forexlearn to trademarketstocktechnical analysistraderstrendlines
Lisa Ramadhani

Lisa Ramadhani

Reading and travelling bring us the opportunities to understand the complexity of this world.

Related Posts

Why Brokerage Extends over DSPPs? Pt. 3

brokerage vs DSPP
by Putriyana
September 25, 2023

In internet investing, DSPPs is indeed an agreeable deal. Because, brokerage allows significant payment for trading and management fees for...

Read more

Direct Stock Purchase Plan in Methods Pt. 2

methods in DSPP
by Putriyana
September 24, 2023

Usually, the investor creates a monthly deposit, then the company applies this amount for purchasing shares. Every month, the plan...

Read more

Definition of Direct Stock Purchase Plan Pt.1

Direct stock purchase plan definition
by Putriyana
September 23, 2023

By definition direct stock purchase plan or DSPP is a plan enabling investors to directly purchase a company stock without...

Read more

Beta Approach for Investment Worthiness, Pt. 3

Beta approach for investment
by Putriyana
September 22, 2023

Beta or famously known as beta coefficient signifies a stock, a fund, and a portfolio’s volatility in comparison with the...

Read more
Load More
Next Post

Day Trading Rules That You Must Know!!! (1)

Trending Issues

  • Cristiano Ronaldo makes Coca-Cola losing millions businesses

    Cristiano Ronaldo and His 6 Successful Businesses

    0 shares
    Share 0 Tweet 0
  • UK Chip Designer Arm Makes Nasdaq Debut in Largest IPO Since 2021

    0 shares
    Share 0 Tweet 0
  • Naver Webtoon to Enter Europe After Asia and North America

    0 shares
    Share 0 Tweet 0
  • How to Best Deal with Social Proof Bias and Its Influence on Your Trades

    0 shares
    Share 0 Tweet 0
  • Lazada Co-Founders Challenge on Social Commerce

    0 shares
    Share 0 Tweet 0

Get the latest market news and trading tips to your inbox daily, subscribe now !

Topic

  • Asia News
  • Asia Trade
  • Bonus+Promotions
  • Broker News
  • Business News
  • Cryptocurrency
  • Currency Analysis
  • Finance News
  • Forex & Market
  • Forex Tips
  • Hot News
  • Investment Tips
  • Learn to Trade
  • Market Analysis
  • Politics Issue
  • Reviews
  • Social Media
  • Stock Analysis
  • Stock Market
  • Stock Trading Tips
  • Technical Analysis
  • Tips
  • trading strategy
Go Trading Asia

Go Trading Asia covers the latest in Business and Economic News and Market Analysis, with the aim of Providing Readers with the knowledge and tools to make better informed financial decisions.

  • Contact us
  • Privacy Policy
  • Disclaimer

© 2021 Go Trading Asia.

No Result
View All Result
  • Awards
  • Forex
  • Crypto
  • Stocks
  • Education
  • Broker Directory
  • Contact us

© 2021 Go Trading Asia.

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In