HOW TO TRADE WITH TREND LINE BREAKOUT

- Hello, all my subscribers. I believe that 100% traders know trend line. Many traders, investors usually trend line breakout as consideration within their trading system. However, are you sure that you have a good understanding of how to trade with trendline breakout? In this analysis, I just mention to downward trend line breakout, upward trend line breakout will be updated in the following analysis.
- General: After a strong reduction, the high probability that price will rebound, we call it as pull-back movement. Current time, traders will confuse between two options:
+ Option 1: Price will keep its previous trend line when pull-back complete.
+ Option 2: Price will make reversal movement, transfer to upward movement.
To make right option, we need to analyze structure of pull-back movement. Now, look at chart above:
- From 05 Dec 2022 to current time. BNB have two main movements:
+ AB: Strong reduction
+ BC: Pull-back
BC’s structure tell me it completed reversal movement because it meets two conditions of upward trendline:
1. Following top is higher than previous top (as chart show).
2. Following bottom is higher than previous bottom (as chart show).
Because of these reasons, I opened LONG position.
- Summary
1. DO NOT OPEN LONG IMMEDIATELY WHEN PRICE BREAK OUT DOWNWARD TREND LINE.
2.TAKE TIME FOR WAITING CONSIDERING, ANALYZING STRUCTURE OF PULL-BACK MOVEMENT
3. ONLY OPEN LONG WHEN PULL-BACK IS UPWARD TREND LINE.