How Trendlines Reveal Market Trends
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작성자 Sherman Jess 댓글 0건 조회 6회 작성일 25-11-14 19:14본문

Trendlines offer a straightforward yet powerful method to gauge market movement.
These lines make it easier to recognize if prices are climbing, falling, or trading in a range.
A valid trendline requires connecting at least two major swing points that reflect the prevailing trend.
In an ascending trend, join the successive troughs; in a declining trend, connect the successive peaks.
Each retest of the trendline without a breach reinforces its validity.
When the trendline angles up, it reflects that demand is consistently outpacing supply.
A bounce off the trendline can serve as a high-probability entry point for bullish trades.
When the trendline slopes down, it reveals that supply is dominating market sentiment.
In this case, traders may look for chances to sell or short the market when price approaches the trendline from above.
Trendlines can give false signals and should never be relied upon alone.
Not every breakout leads to a sustained reversal—context matters.
A break of a well established trendline should be confirmed by other indicators or price action before making any trading decisions.
Volume can also help validate the strength of a trendline break.
The most successful traders overlay trendlines with multiple technical confirmations.
They are not meant to be used in isolation.
Higher time frames yield more reliable trendlines than lower ones.
A trendline on a daily chart holds more weight than one on a 5 minute chart.
Markets tend to remember and react to well-established trendlines.
Trendlines act as a compass, keeping traders in sync with the dominant market flow.
By consistently applying trendlines and observing how price reacts to them, traders can develop a better sense of market sentiment and improve their timing for entries and تریدینیگ پروفسور exits
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