Strength Of Trendlines

[pipsaholic]

Hi,

Can a pro who has been using trendline’s tell me of their experience when usually they are broken or when best to buy or sell off a bounce or when they break? After trading for 1 year I find it breaks usually on the 4th or 5th bounce more on the 5th bounce break and the odd occasion 3rd while the 2nd bounce is the strongest.

Thanks.

[Trade Spotting]

Hi,

Can a pro who has been using trendline’s tell me of their experience when usually they are broken or when best to buy or sell off a bounce or when they break? After trading for 1 year I find it breaks usually on the 4th or 5th bounce more on the 5th bounce break and the odd occasion 3rd while the 2nd bounce is the strongest.

Thanks.

What time frame are you on? To me, that is the critical question.

A break, close and hold below a 4hr, or daily, trend line gives me more conviction than one off lower time frames.

What say others?

PS...I would also like to add that a trend line break, up or down, on low volume or low momentum holds less meaning for me too. For example, volume will probably be low throughout most of this week. I would be more cautious of trend line breaks on this low volume and I'd be looking for further confirming factors before being comfortable with a trend conviction. That's if I was trading.....because....you want to trade smart...not often!

Mary

[pipsaholic]

Hi Mary,

Great advice. I should of mentioned I trade the 15-1 hour charts using the 4 hour and daily for trends and market structure. Do you trade spot forex as volume is not required I understand? Is that the case?