Trendline Forex Trading Strategy

Trendline forex trading strategy is a price action fx trading technique that is invented to exchange the price bounce off the trendlines.

In order for you to utilize the trendline fx trading strategy, you need to have acquired knowledge of how to draw an appropriate Trendline.

How to Draw Trendline

You need a minimal of two lower swing high limits to sketch a downward Trendline (to illustrate market in a downward) and two above swing lows to sketch an upward Trendline ( to illustrate market in an uptrend) like the chart displayed below.

When the price draw close to the Trendline and embrace it on the 3^rd, 4^th, 5^th limit or low and so forth…that is when you purchase or auction.

Features

1. Works on any time frame perfectly.
2. You can utilize this strategy in all currency pairs.
3. No foreign exchange indicators are necessary buy you should learn your repeal candlestick patterns, as they are very useful in providing you signals to purchase or auction when price reaches the trendlines.

Purchase Rules

1. Sketch a higher trendline joining a minimal of two upward lows (higher swing lows).
2. Pause for price to approach and hit the trendline at some level beneath the future.
3. Position a purchase stop order 2 to 5 higher up, the high of the candlestick that reaches the trendline.
4. Position your stop-loss 2 to 5 beneath the low of the candlestick.
5. Position your gains aims on prior important lower swing highs (or limits) that you observe on the chart or target for risk: reward of one which equivalent to three.

Auction Rules

1. Sketch a downward trendline joining a minimal of two lower highs (or lower swing highs).
2. Pause for price to approach and hit the trendline at some level beneath the future.
3. Position an auction stop loss order two to five pips beneath the low of the candlestick that approaches the trendline.
4. Position your stop-loss two to five pips over the high of that candlestick.
5. Position your gain aims on prior important higher swings low (troughs) that you observe on the chart below.

Exchange Management

Here are some exchange management methods which you can utilize:

1. Lock gains by trail pausing it by moving your stop-loss and positioning it at the rear of swing high lows so there is less possibility of you getting paused out prematurely if you decide to move out the trend.
2. Move up stop-loss to breakeven if price surpasses by the value risked.
3. Meditate ending half of your establishment if price moves up by twice the value risked and let the other to extend or follow through your take-gain aim.

Utilize this strategy at your own risk. WindsorForex.com cannot be responsible for any losses associated with using any strategy presented on the site. It’s not recommended to use this strategy on the real account without testing it on demo first.