In every trending market, whether the trend is up or down, there are Buy Zones and Sell Zones which are divided by Trend Lines. Understanding the Buy and Sell Zones will lead to profitable trades.Let us take a look at the example below:The chart above represents the 4 hour of the EUR/AUD which has been in an uptrend. Above the Trend Line is the Buy Zone and below the Trend Line is the Sell Zone of the Uptrend. On the break of the Trend Line; it does not mean it is the end of the Trend; the market may be testing support levels with the Uptrend still in place, creating a pattern of consolidation or a new trading channel.Trend Lines are also support and resistance levels. They are powerful tools to successful trading. I am aware that everyone has their own style of drawing Trend Lines; whatever your preference the same principles and trading rules apply.You may now ask " So what happens when the market is within the Sell Zone of an Uptrend ?"There are a number of scenarios that could be taking place:. It could be a counter trend trade or retracement testing levels of support.. The market is exhausted from a huge run and is creating consolidation between support and resistance levels..…
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