Hello Digiassetindo members, let's start learning more about technical analysis to help identify the direction of price movements using trendlines. Trend is a movement that shows the direction of market movement. The word "trend" is often used to express circumstances, where something is in vogue or is of concern to the market.
Trendlines are easy enough to be used by traders who are just learning. You can find support and resistance levels easily with the trendline so you don't enter a position against the trend. Trendlines, although the method is quite simple, can be an easy and powerful strategy in looking for buy/sell opportunities to follow the direction in which the market is moving.
By understanding support and resistance lines, traders will be more optimal in minimizing risks and maximizing profits. For downtrends, trendlines can function as resistance. On the other hand, during an uptrend, the trendline can function as support.
Then how do you enter after finding the trendline position (purple line) just waiting for a correction to occur to the trendline area (red arrow). Place the target (TP) at the closest resistance, and prepare for curloss (CL) below the trendline. Please note, the ETH Asset chart above uses the M30 time frame (30 minutes). However, you don't need to stick to the time frame exemplified in the image. You can also use it on larger timeframes like H4 to get further movement.
Tips for using trendlines are:
Often practice to identify the trendline area in detail, then in the entry, try to use an amount that is not too large, prioritizing entering assets with clear projects and teams. Keep DYOR Before Investing/Trading
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