In this video, you will learn about how to draw trendlines. For example, look at the EUR/USD daily chart. As you can see, the pair is in an uptrend making higher highs and higher lows. Start by connecting at least two higher lows and draw the trendline. At some point, the market breaks below this trendline. After that the market experiences a strong selling pressure.
Now, look at another example. Look at the USD/JPY chart. Start from the swing low and connect the higher lows. As you can see, the price comes again and again to touch this trendline testing for support. So, you can look for long entries in the direction of the trend with your
However, if the price breaks below the trendline, then you can look for a short entry after the retest of the trendline for resistance. You can use the trendline tool on your MetaTrader platform. It is easy to draw trendlines as you progress. Drawing a trendline makes it easier to observe trends. By drawing a parallel line, you can draw a channel.
Drawing trendlines helps you find trading opportunities in the direction of the trend with a good to risk to reward ratio. So, start practicing today to draw trendlines on a demo account.