hey fams I’m Francisco, a forex newbie. I believe with forex and baby pips my life will change from better to very good.
Please guys I will ya support on how to correctly draw Trendlines, forex price actions, and fundamental analysis
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Hi @Francisco24 - re trendlines.
I’m not trying to be clever but you have asked a very important question. However, the answer is not so important.
Firstly, the trendline is not primarily a diagnosis of the market. Its not DNA or a fingerprint or a mass spectrometry analysis. It is mainly a guide to you and your trade decisions so it matters where you draw your trendline but it doesn’t matter very much if other people draw theirs in a different place.
You must have your own standardised technique and rules for drawing your own trendlines and you must stick to these rules. Do this in a demo account until you’re very good at it and the trade decisions are mostly good. But always remember the market can’t see your trendlines.
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Ok bro what about price action
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Study people like Al Brooks on short time-frame trading, like Alan Farley on longer time-frames, and countless others who will be of some help. Its a wide subject but price action reveals very precisely what price is doing so worth trying to learn and experiment with it.
If any details are unclear, post up questions here.
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There is alway debate on the correct or incorrect way to draw trend lines, and when reading up on them you’ll always get different answers. Do you draw them using the wicks (high and low), or do you ignore the wicks (open and close)? There really is no right or wrong, it all depends on your strategy and what works best for you.
I personally don’t use the wicks for trend lines because I focus on open/close bars, and you’ll notice many indicators give you this option as well in their settings. However, I do not ignore the wicks. Some people call them ‘noise’ (a reaction to a news event or other announcement creating short term volatility) but they do matter because fact is price got there one way or another, so for the purpose of setting SL’s they are important (to me).
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Hey, trend lines depend upon the support and resistance. Refer to this link to understand how to draw trend lines. How to Draw Trend Lines Perfectly Every Time [2020 Update]
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Welcome to the community, Francisco. Good luck on your fx trading journey.
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Thanks bro
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Can I get ur contact details please
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I would advise trying to also look at fundamentals :). Technical analysis is a bit of Voodoo magic
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I Will love to, buh don’t really know much on it
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Yes, that is true. Fundamental analysis is a better approach for beginners.
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First thing is the identification of two points for the trend line. Then you need to look out for the bullish price action. Remember, higher the time frame, better will be your results.