The strategy of TrendLine Trading
Expression, saying “The Trend is one’s Best Friend,” is a true statement in binary trading. We attain two kinds of trend line dealing. An asset can easily trend in two different ways, whether down or up. An uptrend, moving upwards or ascending the indications bullish momentum and downtrend, downwards or descending the trend signals the bearish momentum. Both the condition of the market can be easily traded in their favor. When the markets begin to trend, they create channels where the cost starts moving in. It can be easily identified by the lower lows and higher highs, mainly based on trend direction.
Bearish and Bullish
The bullish market shows purchasing pressure, which pushes the cost higher, resulting in an uptrend being created.
A bearish trading trend signals the selling pressure, which causes the price to fall, which in turn results in a downward trend. These terms can be regarded as bearish and bullish momentum.
Application of Trend Lines
Drawing these types of trend lines, one needs to identify nearly two points, no matter whether it’s the top or bottom of the channel. Channel lines need to be diagonal in the orientation and should be parallel too. The more lined up and the higher the time frame, the stronger the channel will become. This particular rule is applicable in both the down and uptrends.
Trend line dealing can be utilized in combination with the Low/High option. After identifying the channel, a put/low option can be easily placed when the cost bonuses from the top of the channel’s line. Call or high options can be easily placed when the cost bonuses from the bottom of the channel.
It would help if you always tried your level to place the trades in the direction of a trend instead of trade against it. We can note a downloadable channel clearly about the picture mentioned above, indicating that we should place put/low options. Trend line strategy is a bit more difficult, but it yields high possibility trades.