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Entering a Trade in a Downtrend

Entering a Trade in a Downtrend

Richard Krivo, Trading Instructor

Instructor’s Response:In a downtrend you want to sell at resistance. In an uptrend you want to buy at support. This way, you have the daily trend helping to 'push' your trade.So in a downtrend, the trendline (resistance) would be drawn above the price action while in an uptrend the trendline (support) would be drawn below the price action.In this case, you are looking for an opportunity to sell at resistance and profit can be taken at the next level of support and/or resistance.

Entering_a_Trade_in_a_Downtrend_body_19997d1224804523-post-day-chart-10-23-08.png, Entering a Trade in a Downtrend

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.