Chapter 8
Trend Lines and Remembered Lines
Most traders know about trend lines. However, a number of retail currency traders use them only as a secondary trading tool. After all, surely there are more “advanced” trading tools that are better. Let's face it: Trend lines aren't the most intellectual of trading tools. Connect the dots by drawing a straight line. Even a preschooler can do it, right?
The idea of advanced versus beginner trading strategies or tools tends to get me a bit perturbed. Phrases like “Let's have an advanced trading seminar to attract a higher clientele of traders” or “Let's focus the webinar on advanced trading tools and concepts” just make no sense to me. If I teach something that is advanced, it is not simply because it is advanced, but because it satisfies my mission statement.
There is a right way and a wrong way to approach and trade the currency market. Your approach to trading is determined by your mission (and in this book, the mission is defined as making the most money with the least risk). So-called advanced trading tools and sophisticated strategies are not a requirement for either. Too many retail traders complicate trading, which increases uncertainty and, with it, fear.
Trend lines are probably the simplest of trading tools but effective for traders who want to execute low-risk trades that often lead to a trend with defined risk. They are also beneficial in targeting profit levels after a trend-type move. Trend lines are visual, they are intuitive. ...
