Strategies

How to trade the bearish trend line in the market using price action confirmation signal

Price action trading strategy

Trading bearish trend line with price action signal

Trading the bearish trend line using price action confirmation signal is one of the most profitable ways in the forex market. This system is extremely reliable and simple. But in order to trade the bearish trend line in the market, you need to learn how to draw the perfect trend line in the market. In order to draw a valid trend line in the market, we need at least three connecting points.

Let’s see an example

Price action trading strategy

Figure: Perfect sell setup at the trend line resistance

Explanation 

In the above figure, you can see that the market has been forming lower highs in the market. All you need to is to connect three lower highs in the market. If you are advanced traders then you can trade the third point of the trend line just by using the bearish price action confirmation signal. However, if you are new in trading you can take our forex trading course and easily master the art of trading.

When you use the price action confirmation signal in the market you need to consider three things. First all make sure that you are executing your orders in the market in favor of the long-term prevailing trend. Secondly, make sure that you have drawn the trend line in the higher time frame in the correct format. Last but not the least make sure to follow proper risk management factors.

Those who are totally new in forex trading can explore our Fx School section and contact us for the professional forex trading course offered by us in three different categories. So if you are determined to make money via trading then make sure that you develop a solid knowledge before starting to trade with real money. Once you master the art of price action trading strategy then you will see that trading is not at all complex.