It is well known in the currency trading world that the trend is your buddy and any forex trading method based around following a trend, such as No Loss Robot, is likely to be both simple and effective.

It is really easy to create trend lines on any forex chart, but most people prefer to use candlestick charts for this as the candlesticks are such a clear visual signal. When trend lines are forming, you may use them as a signal to sell or buy the currency pair.

Step one in using trend lines for a foreign exchange currency trading plan is to ascertain whether the market is rising, falling or is stable inside certain parameters. Naturally there’ll always be fluctuations, but at specific times you will see clear patterns.

1. If the price is rising

If the price is going up, first draw a straight line through the highest highs on the chart. This line will be sloping upward. Then draw another line through the lowest lows on the chart. If this line is also going upward and is approximately parallel to the 1st, you have an rising trend.

You can then use these two lines as support and resistance lines. This means that you can presume that while the trend continues, the price will remain in the area between these 2 lines. any time the price hits the top line you might sell, on the assumption that it’ll fall back. In a way this strategy means going against the trend, but you would only hold that position for a short while.

otherwise, any time the price hits the final analysis you might buy, on the assumption that it will soon rise again. In this case you follow the trend which is frequently a better methodology. However, you must keep in mind that there will at some point be a true reversal and you may be caught out by this.

2. If the price is falling

If the price is going down, you can follow an analogous strategy to the prior system. The lines you draw will be going downward but you’d still buy when the price hits the lower line and sell when it hits the upper line.