Valuable, and both easy to build a tool for trend analysis.
The main value of the trend line - to help the trader in time to see a possible change in trend.
Principles of construction of the trend line
The trend line is based on 2-3 points
- Bull market - 2-3 minimum
- Bearish trend - 2-3 maximum
Sloping channel, as a kind of trend line
Sloping channel, in contrast to the trend line has a second, "target" line.
Sometimes prices vary up or down the channel.
The main disadvantages of the use of the trend line and the classic sloping channel are:
- It is difficult to properly build these tools in real time. Price rarely provides us with clear reference points to validate the application of the tool.
- In real-time is difficult to estimate the trend line breakout - true or false
- Price rarely goes in ascending or descending channel, so the second boundary is basically just useless.
MF sloping channel
To solve these problems in the trading system Masterforex-V:
- Put unambiguous rules for constructing sloping channel
- The use of the indicator Awesome Oscillator provides accurate filter false signals
The benefits of using an inclined channel Masterforex-V:
- You rely on clear rules for the construction and adjustment of inclined channel
- You can appreciate the truth of the channel of real-time
- You get one more accurate tool wave analysis
Read more:
- Support and resistance levels
If you are familiar with these concepts - safely move to the next class: Elliott Wave Theory