- Part 1: Introduction to Basic Trendline Analysis
See these tools & methodology used in practice, Join Michael for his Weekly Strategy Webinar on Monday mornings.
In this bi-weekly webinars series on the Foundations of Technical Analysis, we discuss the methodology of constructing a basic trade setup. In this session, we review how to use slope-lines and simple multi-timeframe analysis to identify key reaction levels in price.
Remember that the most important aspect of trendline analysis is identifying the proper slope or gradient of the market. The more points of contact price has on a given slope-line, the more significant that line becomes. Parallels of an identified slope extending off key highs / lows in price are extremely helpful in projecting where price may ultimately encounter support / resistance.
While these methods can be used on almost any timeframe, it’s important to always have a broader opinion on the market within the context of the primary trend- otherwise your flying blind! Once that is established, drilling down into closer timeframes helps you to identify with more accuracy the timing of when to trigger a given trade.
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In future webinars we’ll be discussing how to integrate basic slope analysis with various overlay & momentum indicators, classic candlestick formations and proper risk management to create a more holistic trading approach. Click here to register free!
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---Written by Michael Boutros, Currency Strategist with DailyFX