Trendlines when drawn properly make an excellent tool for traders. Used improperly though, they become ineffective and even counterproductive, resulting in a belief that prices have made a reversal when they really haven't, or that a trend has strength when price action suggests it doesn't.
The Boss Auto Trendline Indicator draws the trendlines automatically, and now you can effectively use trendlines as part of your trading strategy.
Trendlines highlight a trend or range (sideways movement). A trendline connects swing lows, where the low is lower than the surrounding prices, and swing highs in price. When the price rises, the swing lows rise.
Red Lines & Dots.
Connecting these lows with a line results in an ascending trendline , showing you that the trend is up. A trendline can also be drawn along the swing highs. This shows the angle of ascent, and the strength of the price move, whether strongly higher or not.
Green Lines & Dots
When the price falls, the swing highs fall. Connecting these highs with a line results in a descending trendline , illustrating the downward trend. A trendline can also be drawn along the swing lows. This shows the angle of descent and the strength of the downward price movement.
Support & Resistance Zones
Green = Support Zones
Red = Resistance Zones
The basic trading method for using support and resistance is to buy/long near support in uptrends, and to sell/short near resistance in downtrends.
Fast & Slow EMA's
Trend Following - you essentially use the EMA to track the primary trend. If a trading pair does not close beyond the average - you stay in the trade.
Moving Average Crosses - by using two different exponential moving average crosses you can generate buy and/or sell signals. For example, you can have a fast average cross a slow average to trigger a trade signal.
Dynamic Support and Resistance - EMA periods like the 21 or 55 can act as support and resistance zones.