In this video, you will learn about a forex reversal strategy using trendline break. For example, look at this chart. Market is in an uptrend and you can draw a trendline here connecting lows. At some point, the market breaks below the trendline. The simple way to trade this to take a short position after the trendline break and place your stop-loss above the highs. A conservative way is to wait for the retest of the trend line.
You connect higher lows to draw an uptrend line. To draw a downtrend line, you connect lower highs. Drawing trendlines help you identify trends more clearly and you can find out when the next support or resistance will occur in a trend. You can combine the trendline break with news events or headlines for increasing probability.