The trend trading system is one of the most secure ways to make a profit in the Forex market. Those who rely on the trend line trading technique wins most of the trades. The traders execute orders in the bearish and bullish trend line. In this article, we are going to discuss the bullish trend line trading strategy. The system will be a little bit different since we won’t rely on the indicators or EAs. So, let’s learn the technique and start making a profit by trading the bullish trend line.
Finding the obvious trend
The first thing which you need to learn is identifying the major trend with the naked eye. You can’t use any tools. The pro traders in Hong Kong can determine the major trend with just a glimpse. Though you might not have this ability at the initial stage, after you learn to analyze the market details, you will slowly learn to predict the trend with the naked eye. Use the demo chart and try to predict the trend. It’s more like a test and once you learn this technique, you need to move to the next step.
Drawing the bullish trend line
To draw the bullish trend line, you must learn to find the three important points. Since you will be trading the market with the bullish trend line, find three higher highs in the daily or weekly time frame. Once you have found these three important points, try to connect it with a horizontal line. The horizontal line will act as your trend line support tool. But having the trend line is not enough. You have to learn about the execution policy to secure the best possible trades.
Execution of the trades
The execution of the trades in the options trading industry plays a vital role in your success. If you want to make a decent profit, make sure you are not pushing yourself to the edge. Look for the reliable price action signals at the critical support level. But there is a small twist when it comes to the use of price action trading signals. Instead, of executing the trades based on single candlesticks, try to find price action signals based on multiple candlesticks. By doing so you can greatly improve the trading skills.
Analyzing the stops
Analyzing the stops for your long trade is very crucial. The price action traders often set too tight stops for each trade and lose a big sum of money. Due to the use of tight stops, many traders lose money and fail to make a profit by trading the bullish trend line. You must keep some gap between the tails of the candlestick while placing the stops. By doing so you can expect to make a decent chance in your trading results. The market will never hunt the stops and you will be safe most of the trades. But do you think you will always win trades by using this strategy? Losing orders will be very common when you become a fulltime trader.
Dealing with the losing orders
Dealing with the losing orders is more like an art. The pro traders always manage to accept the losing orders with getting hurt. They don’t use too much leverage or excessive risk while trading the bullish trend line support. Most of the trend traders take less than 2% risk in each trade. If you can follow this technique, you don’t have to think about losing trades. The losses should be considered as your business costs. Once you learn to deal with frequent loses, you can trade this market without any stress. So, take your time and make sure you are not taking aggressive trades.
Trading the bullish trend line with the help of price action signals is a very efficient way to make a profit. You might have trouble understanding the price action signals but this is one of the most effective ways to make your life better. If required, use the demo account to develop your skills as a currency trader.