Price dropped to the uptrend line and 0.014000 support level. It's a possible reversal zone, but DMI confirms strong downward movement. We should expect for a possible breakout. If the market passes through the uptrend line and falls lower 0.013300 level, we'll get confirmation for further downward movement. It will be a sell opportunity. Open short trades below 0.013300 level with stop orders above the uptrend line. Profit target should be at 0.010000 support level. Other variant of price movement can be based on a price reversal signal. If the market bounces from the uptrend line, we'll have upward movement. When price breaks the kumo, we'll have a buy signal. Long trades should be opened above the high of the signal candle with stop orders below the local swing low. Profit target for long trades must be at 0.020000 resistance level.
Shouldn't trend lines only be drawn in logarithmic scale? (I'm asking in the most humble way possible knowing that you're a pro)
Growth in nature is exponential (alternatively a combination of exponentials for logistic growth).
The logarithm of an exponential growth is linear, i.e. a trend line.
I'm trying to be humble.
DLavrov
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@LogicalDeduction, a trend line should be drawn based on swing highs and lows, depending on a market movement. Why do you need to draw a trend line based on logarithmic scale? Make trading simple.
Growth in nature is exponential (alternatively a combination of exponentials for logistic growth).
The logarithm of an exponential growth is linear, i.e. a trend line.
I'm trying to be humble.