High accuracy “TrendLine WPR Reversal Forex Trading Strategy” – A trendline is probably the most basic tool in the technical trader’s toolbox. They are easy to understand and can be used in combination with any other tools you might already be using.
By definition, a trendline is a line connecting two or more lows or two or more highs, with the lines projected out into the future.
If drawn correctly, they can be as accurate as any other method.
- Time Frame: M5 or higher
- Currency Pairs: Any
- Vertical line Moves with Price
- Williams’ Percent Range
- Download TraderVersity.Com-TrendLineWPRReversal (Zip File)
- Copy mq4 and ex4 files to your Metatrader Directory …/experts/indicators /
- Copy the “TraderVersity.Com-TrendLineWPRReversal.tpl” file (template) to your Metatrader Directory …/templates /
- Start or restart your Metatrader Client
- Select Chart and Timeframe where you want to test your forex system
- Right-click on your trading chart and hover on “Template”
- Move right to select TraderVersity.Com-TrendLineWPRReversal
- You will see “TrendLine WPR Reversal Trading System” is available on your Chart
The very first thing to know about drawing trend lines is that you need at least two points in the market to start a trend line. Once the second swing high or low has been identified, you can draw your trend line.
Here is an example of the first two swing lows that have been identified.
Notice in the chart above, we have two main points at which we can start to draw our trend line.
There are three very important keys to drawing effective trend lines.
- The higher time frames will always produce the most reliable trend lines, so start there and work your way down
- Most trend lines you come across will have some overlap from the high or low of a candle, but what’s important is getting the most touches possible without cutting through the body of a candle
- Never try to force a trend line to fit – if it doesn’t fit the chart then it isn’t valid and is therefore not worth having on your chart
This “TrendLine WPR Reversal” method can help you spot potential reversal points in the market.
At this point in the lesson, you know that a trend line can be used to identify potential BUYING or SELLING opportunities. But this only works as long as the market continues to respect the trend line as support or resistance.
This is where you have a chance to trade a market as it makes a turn from a major swing high or low. Below is an example of a market that broke trend line resistance.
This gave price action traders an opportunity to buy the market easily.
This is a great way to use trend lines to spot potential reversals in the market. It is without a doubt one of the best ways to catch a big move as a market changes direction.
- Price break trend line resistance
- Williams’ Percent Range: Upward and above level -45
- Price break trend line support
- Williams’ Percent Range: Downward and below level -55
- The best TrendLine is MANUAL TRENDLINE (In this trading system we have to draw trendline manually)
- The higher time frames will always produce the most reliable trend lines, so start there and work your way down.
- Never try to force a trend line to fit – if it doesn’t fit the chart then it isn’t valid and is therefore not worth having on your chart.