Showing posts from July, 2020

Trendline Strategies using Price Action Analysis

This post intends to continue what was previously posted here. Knowing the importance of candlesticks, the patterns they form, and their crucial importance when the price reaches trendlines or support-resistance levels, I make here a simplified summary of my trendline strategy for day-trading, using Price Action Analysis. For this, I will rely on the charts from Forex.doc, which are among the best explained and drawn that I have found on the internet. Thanks to their authors for permission to publish some of them here.

Trendline Strategy: Basics
A trendline connects swing highs or swing lows during a trending market, and can act as support or resistance line, but also a break of it can signal a trend change.  In an ideal uptrend, price make higher highs and higher lows. In an ideal downtrend, price make lower highs and lower lows.
The strategy is based on the breakouts and pullbacks made by the underlying's price:
 - A breakout is a potential trading opportunity that occurs when …