In this article I’m going to show you a way to use trendlines that you might haven’t thought of before, or least I hadn’t. The first time I saw this was over at the oanda fx boards, a guy had posted his chart with his trendlines (Sorry, I don’t remember your name.). It was so simple it was ridiculous, yet I hadn’t thought of it before. At the time being I was considering myself pretty “read up” on technical analysis.
It was a few hours before the non-farm payroll and the guy had simply put down a vertical trendline at 13:30 GMT (where the release is to be made). Now, I know what you’re thinking: you don’t need a trendline for that, I know when the release is to be. However, for me they’ve proven to be helpful. I think they can help to anticipate price movements up to the point of the release (or other action). Often the market consolidates or moves a certain way, based on hope or fear, in anticipation of the release. To have the point of “action” properly marked out helps. Of course used together with other technical analysis, but I do think this is something you should add to your “trader’s toolbox”.
It’s also good to start your trading day by marking out the day’s important events. That way you will have it all there right on the chart. As with all technical analysis I can’t promise you any remarkable gains, but I do think this could make you work a little bit easier sometimes.
Last update: 2012-04-07 13:35