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Trendlines Basic Analysis

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mayorspread
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mayorspread  

Trendlines can be used to analyze individual securities, such as stocks, commodities or indexes, among other things. Understanding the direction of an underlying trend is one of the most basic ways to increase the probability of making a successful trade because it ensures that the general market forces are working in your favor. Many technical traders will also draw trendlines to identify an uptrend or a downtrend and will use this tool as a guide for when to sell as it can also be an early indication of a trend reversal. The break below an uptrend line is in itself a sell signal, attracting new sellers to the market

Technical signals generated by various technical patterns and indicators are very subjective; trendlines are no exception. It is entirely the trader's decision when it comes to choosing what points are used to create the line and no two traders will always agree to use the same points. Many traders will argue over what prices to use when creating the trendline, remember that all will agree that the strength of the trendline increases as more prices test the support/resistance. Some traders will only connect closing prices while others may choose to use a mix of close, open and high prices. This strategic advantage is available to any trader who feels comfortable trendlines and for those who are able to reach confidence when they incorporate it into her trading strategy

I would like to know more about this indicator and about the strategies that use it. What do you know about it? Can Someone help me

Trendlines Potential CharlesMcG’s Blog

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