DislikedDon't get fooled by clowns. People who mixes "100% sure" and investments (like forex) have normally traded/participated lesser than few months with any kinds of financial market. Lack of experience and reality-check makes people hunt for the ultimate "100% sure" trade. -Probabilities- is the keyword.
A simple and quick explanation of using TL's;
To draw TL correctly, we need to understand why we are drawing them. How do you wanna use them?
Mostly, TL are handy when it comes to measuring trends health if you want. Tested at least 2 times (3 or more is "perfect") drawn from the start of a bear/bull run.
Like in this example on daily G/J, we notice that price broke up above daily TL and traded without even retesting it. Does this give us any valuable info? Yes, bears have become weaker, and bulls have become stronger. Higher lows confirms it. What side increased your probability for profits? The weakening side or the side gaining strength ? Of course, it depends on what TF you are trading, but point should be understandable.
What scenario would change the currently outlook (bullish) on daily chart ? Only got 1 TL on daily chart which is in play right now (red line). When price is below that TL, I would know that the probability for more downside is in favor.Ignored
I dream, therefore I become.