Good example of entry . Multiple use of trend line I use this as example for case study to find a good entry.
You have to assume when I draw the trend line, I am at 30 Nov 2022 until 02 Dec 2022 . Because when we draw trendline, we expect what is the outcome when we near the edge of the trendline and what will happen next.
First try identify the highest point for a period as Higher high . In this case , I use the high beginning of the year.
Then verify possible lower high till 30 Nov 2022 .
Connect multiple possible trendline and draw longer because I found out it can be use in the future.
Add in EMA and volume indicator might have good use as my initial intention is not using any indicator except for drawing tools.
I am using SSL channel. But in case you don't know what is it.
The easy way to understand is I am using EMA 50 "High" + another EMA 50 "Low" . The area between this 2 EMA , I will use it my as EMA 50. Same as EMA 200
Why am I doing this?
So that when a candle or price fall above my EMA 50 , big possible of uptrend. If fall below EMA 50 then downtrend.
This is my own decision to use . No right or wrong if you use your own way.
From advise of many masters, you cannot use one indicator alone to decide your entry or exit. Multiple confirmation are needed to entry to ensure your entry is a good quality one.
Every trade has risk even good quality ones, so plan your trade properly. Assume for good and worst scenario that it could be. Plan your stop loss accordingly.
Blue ,white , green trendline will be identified as long term ,mid term, short term trendline.
And coincidence , 3 lines are pointing to the area that almost the same. Thats good quality and with a EMA 50 breakout happen.
This is assume as multiple sign of bullish trend possibility. And also given by extra high volume makes the quality even better. The colour circle.
For the red trendline, can use it in the future as it also given like a support bounce or a rebound when it touch the line or break the line to upwards. The Square boxes.
Every line you draw could bring meaning ,draw it longer and then monitor the price action in the future to see how we can use it as per our trading guide. Let it be support/resistant or area of confluence.
So make sure trendlines have to draw it in a logical way.
This is just case study and learning purpose.
No suggestion to long or short .
Let's learn together
