August 11, 2011
- in Uncategorized by schooloftrade
Trend Lines; How to Draw & use them correctly
Trend Lines; How to Draw & use them correctly
Hotkey = F3 button
First, let’s find the MAJOR trend lines, the ones you really need to be aware of at all times.
Step 1 = Open your slow timeframe (89range)
Step 2 = Load 90 days of data and then load your ‘swing trade’ chart template.
Step 3 = zoom out, and find the most extreme highs and lows (control+ up/down)
Step 4 = move down from the highs looking for lower swing highs
Step 5 = move up from the lows looking for higher swing lows
This marks the most important trend lines.
Now let’s find the minor trend lines.
Step 1 = take your most recent swing high, and then move higher to the next swing high, start your trend there.
Step 2 = take your most recent swing low, and then move lower to the next swing low, start your trend there.
Lastly, fill in the ‘blanks’
Did you miss anything hidden? Look at the previous trading ranges…do you see any hidden channels or price wedges? Remember…don’t force it, look for the most obvious levels to use and then use them with confidence.
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When is the OPEN of the day?
· I use 24hour charts, so my open is 12am EST
· My close is 12am est
· I do not use the ‘session times’ as the open/close
· Session Template = default 24/7
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What time charts would these range charts be similar to?
· 89range = 15min
· 34range = 8min
· 21range = 5min
· 13range = 3min
· 4range = 1min
Big Money Trigger Line (BMT)
· Price magnet
· Makes a great final target
· Very bad place to enter a trade
· I avoid trading around the BMT
· I look to get into a trade with a profit target at the BMT.
· Watch the 4range closely..if price stalls around the 4range BMT we know this is a big RED FLAG for sloppy and inconsistent price action.
