Trend Line Break
Trend is your friend. Dance with your friend. Tune to the trend.
Trend Line Break is a reversal chart patterns, where a stock in an up trend, breaks out of a support trend line and a stock in a down trend, breaks out of a resistance trend line. This is a very basic, simple, time tested chart pattern, which with an addition of a trend following indicator, gives an excellent result.
Volume invariably rises at the break out point, which indicates a strong trade.
Study the charts given below.
See how all the trades are profitable. This being an up trend, taking long trades at the break out of resistance trend lines, gives more profitable trades. (Go with the trend).
How to trade?
Would you like to know, what happened after the last bar in the above example?
Click here to go back from Trend Line Break to Chart Patterns.
Click here to learn about Candlestick Patterns.
Click here to go back to Home.
New! CommentsHave your say about what you just read! Leave me a comment in the box below.