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Trend Lines

Posted By On 1/17/2008 01:35:00 AM Under
1. One can use the trend line effectively which lets an individual know about the exact state of the trend. These are the lines which help one identify the trend and any break down or breakout indicates reversal of an existing trend.

2. At least 3 consecutive points are joined to form a trend line.

3. A longer time frame trend line holds more relevance than a shorter frame trend line.

4. One can place a stop 3% up and down of a breakout or breakdown respectively to catch a trend in its right perspective.

5. trend lines work perfectly on intra day charts for day trading and a trend line break should occur with volume to give credence to the trend line.

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