Trend line pro trader
As shown, the lines are inactive. You may drag them around at will. Notice that text to the left of the line? When you are ready to activate the line, simply change the color of that text to White and the line will become active for trading. On each bar, a Buy Market entry order will be placed when price crosses the LE line if active , and a SellShort Market entry order will be placed when price crosses the SE line if active.
As an quicker alternative to color change, you may activate an entry line by dragging its label text upwards just a bit will do. As with the color change, this will be detected on the next tick and the line will then be activated. Once an order fills at or just beyond one of the entry lines, the matching exit line is activated.
Here we see the LX line activated after a long entry:. In this case, the SE line is still live also, ready to reverse your trade. You may deactivate the SE line by dragging it's text label downwards.
You may wish to pair a separate exit signal with the TL Breakout Entry signal for stylized automatic exit management once you are in the trade, or you can simply let the active exit trendline manage the trade, moving it at will, for example, to tighten up a trailing stop on profits. Notice that the default placement of the exit line as shown above acts as a stop-loss when the trade is very young, but becomes a trailing profit exit as the trade ages.
Here we see how the trade above evolved, with the still-active SE line reversing the long trade and making us short:. After all, what you see printed on your charts as price data is really just the result of trading orders being filled at a particular price. We would all love the market continuing to repeat history precisely, but that is not mostly the case. While the market will usually respect prior swing points and areas of interest, the likelihood of the exact order flow action repeating at these points is rare.
And that is precisely why a trend line that hosts precise touches can be such a valuable piece of market information. Simply put, a trend line that price responds to accurately is a much stronger one to use for your trading decisions than a trend line that stacks lose order flow all around it.
Another factor you must consider when determining the quality of your trend line is the frequency of touches, or simply put, the number of times price has respected the trend line. We obviously need two touches to create a trend line in the first place, but are two touches enough to validate a trend line?
We discussed above that a trend line can essentially be drawn connecting any two highs or lows. Going by that definition a trend line that hosts just two touches is of course valid.
But given how you could draw such lines endlessly on your chart till you barely see your candles, we need to be more selective with using two-touch trend lines. An acceptable way of doing that is to only use two-touch trend lines when the swing points you are using are deep and authoritative — i.
Generally speaking, the number of preferably precise touches you see on a trend line, the more proven and reliable the trend line is. ProRealTrend allows you to display support and resistance lines for your favorite securities in one click.
To check the support and resistance lines closest to your favourite securities' last price, just log in or register to open a free account. As every trader knows, charting analysis takes time and effort to provide consistently good results. These increase exponentially when applied to a growing numbers of securities. Many kinds of detections are available. You can set them up following this sequence:. Select the tab with the type of support or resistance major or all.