School says …
[B]It takes at least two tops or bottoms to draw a valid trend line but it takes THREE to confirm a trend line.[/B]
Read more: How to Use Trend Lines in Forex
does trading on point THREE is advisable ? Or I should not trade on point THREE … rather take it as a confirmation point to establish trend line ?
Please share your experience.
Do not necessarily wait for the third bounce, as the trend could be getting closer to exhaustion…Use volume, where possible, to confirm a move off the trendline (at the second bounce) as confirmation…
I like this article:
The Utility Of Trendlines
I have gone through the article. They did not discuss [B]volume[/B] in the context of [B]trendline[/B]. Am I missing something ?
Could you please elaborate how volume may play a role to confirm a move off the trendline ?
Hello Godzilla, no, you did not miss anything, but here is an article that came out only yesterday,
showing how to use volume to confirm trends, with
examples (including the EUR/USD):