Trendline trader makes trendlines you draw on the chart alot more useful than just a visual tool by itself. Trendlines are not indicators but simple lines you draw up on your currency chart to help with forex technical analysis. When you draw trend lines, you are providing yourself a visual picture of where is the current market and where will it be heading next. And this serves as a mental note assuring yourself that you are aware of where the trend is coming from and that you are also willing to follow it where ever it chooses to go next.
What is Trendline Trader
“Trendline Trader” as the name connotes speaks for itself. It helps a trader to identity possible pullbacks on both resistance and support levels, for the purpose of making sound trading decisions. Many technical chart patterns require that trade entry and exit be executed on these specially drawn trendlines. There are two ways at which the forex trader can choose to trade with these trendlines.
The first way is trading via breakout strategy with technical chart patterns. When price breaks through the trendline, a trade intended on the breakout direction can then be entered according to the trader’s trading system. This particular style of breakout trading can easily be found in many trading systems that trade flags, pennants, head and shoulder patterns, symmetrical triangles, descending or ascending triangles or simply a channel or envelope. Break-through of trendline is an important entry signal for many traders trading technical chart patterns.
The second way of trading with these specially drawn trendlines is trading on reject. When price touches or breaks through the trendline, trade entry will be entered in anticipation that price will meet great resistance or support and will revert back to its ranging levels. Thereby, the word trading on reject anticipates that price will revert to its ranging mode and you are fading a breakout. This style of trading is usually called fading the breakout. Or if it’s in the form of trend trading, as price approached support or resistance level, you are anticipating that it will bounce off the trendline like a ball bounces off the ground and ceiling trading in a channel.
Trendline Trader is Both Useful in Breakout and Ranging Markets
Trading on breakout and on reject can now be made automated in mt4. You can find most auto trendline trader on the forex community. And you can give the free ones a try as they contain the most basic functions of an auto trendline trader EA. Now, a trade entry or exit can be pre-specified by the forex trader simply by attaching the trendline trader to the respective currency chart and draw lines manually on the chart. Next, simply add in a buy or sell on the trendline description box to instruct the trendline trader EA to perform trade execution to your liking.
Trendline Trader Summary
Forex traders can tap on the auto trendline trader software to execute forex trades while they do other work. Forex trading is not an easy work for most part-time traders in the past. They need to monitor the market for potential signals and then manage the ongoing trade until it is finally exited. Most of these tasks are no longer relevant if the forex trader utilize trendline trader as their trading tool.
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