FOREX LINE CHART TRADING SYSTEM

A forex line chart trading system is what most experienced fx traders utilize when preparing to make trades. This system of basically drawing a line on a forex trading chart for a currency pair whether it is a 1 minute, 5 minute, daily, 8 hour etc to point out all the specific price points that are crucial for their particular strategies. 

A FOREX LINE CHART TRADING SYSTEM STRATEGY

One of the main strategies that utilizes a forex line chart trading system is the support and resistence zone. Even as a beginner you should have knowledge of these zones. These zones are where the price for a currency pair stops to rise or fall. Traders will draw a line on the chart to identify the support zones where prices tend to fall and turn around at many of the same spots on the chart. The opposite is also true for the resistence zones where prices tend to rise and turn around at many of the same price points on the chart. 

I drew a few lines for a support and resistence zone for the EUR/USD 5 Minute chart. This is the live trading chart as of 10/30/2020. Many charts will have more than 2 lines because they will have many support and resistence zones at many price points. I am just using this as an exmple. The resistence zone is at 1.16848. As you can see their are 5 different locations on the chart where the market reaches this price point and turns around. Some of the points on the chart do not reach exactly at this 1.16848 point however it is very close and still considered a crucial turning point on the chart. The support zone on the chart above is 1.16774. This zone has 7 different price points on the chart where the price turns around.

Disregard the last line on the chart with the price in blue. That line is just pointing out the current up to date price. 

The forex line chart trading system is very easy when it comes to support and resistence zones. The reason why these lines are drawn is because when you enter a trade, these points of support and resistence serve as a possible exit entry, especially when you combine it with other technical analysis of the charts

The trading system is simple enough. So many complex strategies and information is available and can get quite confusing and sometimes does not work at all even when you do comprehend it. Some of the best and most successful forex strategies are quite simple. 

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