Good morning!
The broken trend-lines have more information to give than the non-broken ones. And here I used a simple trend-line strategy coupled with an oscillator to continue from the last post.
Using a trend-line is nothing but connecting a low point to a high point in price and see for a bounce. Sometimes the bounce happens, and sometimes it doesn't. And the term for this is to test the trend-line.
But the objective for us is not for the trend-line to be tested and respected but to be broken because a broken trend line signals a momentum. It can be a false break or a true break, but that is not the main objective. We want to see it broken. Because of that we get to see a new low or high in price momentum.
Trend-lines drawn in this concept but inside the oscillator, they show us what we may not immediately see in a price chart. And an example of it is here.
Done on a higher time frame, we can expect that in the lower time frames, as a derivative of the higher, we have bearish momentum to be interested in.
The broken trend-lines have more information to give than the non-broken ones. And here I used a simple trend-line strategy coupled with an oscillator to continue from the last post.
Using a trend-line is nothing but connecting a low point to a high point in price and see for a bounce. Sometimes the bounce happens, and sometimes it doesn't. And the term for this is to test the trend-line.
But the objective for us is not for the trend-line to be tested and respected but to be broken because a broken trend line signals a momentum. It can be a false break or a true break, but that is not the main objective. We want to see it broken. Because of that we get to see a new low or high in price momentum.
Trend-lines drawn in this concept but inside the oscillator, they show us what we may not immediately see in a price chart. And an example of it is here.
Done on a higher time frame, we can expect that in the lower time frames, as a derivative of the higher, we have bearish momentum to be interested in.