Trend trading technique

trend trading technique

trend trading technique

All you need is price action. You may also be interested in this free price action trading course.

trend trading technique

Similarly, trend trading technique will head back down to test the resistance level that was broken only to head back up bouncing from that level in an uptrend situation. Knowing this characteristic of price action, we can trend trading technique trading rules around such trending situations. So the main concept of the best trend trading strategy is support and resistance trading.

This previous resistance level at times will act as a support level from which price can bounce back up from. So knowing how price behaves when this happens, trading rules are made based on that.

Trend following

The chart below give you more clarity regarding this. You can either place a sell limit order, an instant market order or use a sell stop order to get into a trade at this support-turned-resistance level.

trend trading technique

For take profit target, measure the distance in pips between the where the support level down to where price starts rising back up to test the broken support level and use that pips and multiply by 2 or 3 and that gives you how many pips of profit you need to set at whatever price level it falls to.

You can either place a buy limit order, an instant market order or use all dealing center buy stop order to get into a trade at this resistance turned support level.

For your stop loss, place it pips below the candlestick with the lowest low in the zone of the broken resistance level. For take profit target, measure the distance in pips between the where the resistance level up to where price trend trading technique falling back down to test the broken resistance level and use that pips and multiply by 2 or 3 and that gives you trend trading technique many pips of profit you need to set at whatever price level it falls to.

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