The Auto Trend Lines indicator automatically draws trend lines on the chart. This is a fantastic tool for technical analysis, especially if you are a beginner trader. The indicator even generates a trend channel that you may use to identify overbought and oversold levels.
Personally, I like trend reversal trades as they allow you to enter a new trend early. I’ve discovered through my years of study that holding out until many ends occur simultaneously and at the same price level may result in high probability reversal trades. If many edges confirm a likely upcoming reversal, your winning % will be greater on average, and your winning trades will be larger.
If the indicator has created an upward trend channel based on the recent price action of the upward trend, the top border of the upward trend channel is in blue, while the lower boundary is in purple. If the price goes above the blue line, an experienced trader knows that the trend is in an “overbought” condition. Overbought circumstances are an early warning sign that the rising trend is about to die out. There is a good chance that there will be a stronger pullback or the start of a new downward trend.
This Download is for VIP Members Only. Not a VIP Member? Join & Get Instant Access Now.
