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Essay

Trend Lines

Essay specific features

 

Issue:

Miscellaneous

 

Written by:

Lori B

 

Date added:

April 3, 2013

 

Level:

University

 

Grade:

A

 

No of pages / words:

5 / 1174

 

Was viewed:

6948 times

 

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Essay content:

The difficulty in constructing trend lines becomes apparent when choosing the specific points to select and connect creating the trend line. As in many aspects of trading, human nature tends to interfere greatly in the proper construction of trend lines. The first major error traders posses when creating trend lines is working from past to present, in other words working from left to right on the chart in their construction of the trend line...
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This is incorrect, for this reason alone; recent price activity is more significant than historical price activity. After all, the forex market is the most dynamic market in the world, meaning it is changing all the time. This approach will seem unorthodox to most trader at first, but in actuality, this is the number one mistake that traders make when creating trend lines...
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