In this video, you will learn a forex trading strategy using trendline breakouts. You need a trending condition for this strategy to work. It will not work in range bound situations.
First, you need to be able to identify an existing trend. You can do this by drawing a trendline or a channel. You can two connect lower highs in a downtrend and draw a trendline. At some point, the price no longer respects the resistance and breaks the downtrend line to break to the upside.
As you can see from this example, price every time it touched the upper line of the channel, it found resistance, and got pushed to the downside. Looking at another example, here is another downtrend and price respects this downtrend line. At some point, the price breaks out to the upside. Then the market comes back to this downtrend line and retests it.
It finds support and price pushes to the upside. Here is your potential for a long entry after the retest with your
But it is important that you need to understand how to identify a trend using a trendline and look for opportunities after the price breaks out of the trendline, and retests it. This way you will obtain trades offering you good risk to reward ratio.