GBPCAD M30 – Trendline Trading +119 Pips
- The first thing that we should do – this is to find out in which direction we will open a trade. In this chart we can draw an up-trendline (200+ bars) with more than 3 touches. This trendline is a support for prices and it will require effort and money from professionals to cross this support. We will be looking for long entry when the price is near the trendline and if there is no VSA signals (in this case weak signals) which would tell us that the trend is over.
- The background is strong. It means that imbalance between supply and demand is in favor of demand (more strong signals). It confirms that we should open a long trade.
- When we see strong signals near the trendline and there is no weak signals behind, we need to be careful and wait until dynamic trend turns from red to green.
- The price touched the up-trendline and moved up. Dynamic trend turned from red to green.
- Open a trade in entry bar (in this case in the down bar when the price didn’t move too far). Stop loss may be placed lower than support line (previous low) or in the place suggested by the Alert System indicator.
- Exit after weak signals.