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In order to trade forex trend line setups profitably I follow a few simple rules . While there are many ways to trade trendlines in the forex market , these are but a few that should make any forex trading trend line strategy more fruitfull when used properly and used in conjunction with proper money management.

1.) Only trade the 3-5th bounce off a specific trend line. Prior to bounce #3 the trend line is not established, and after test number #5 off a trend line the direction in the forex market usually begins to die . The important point to gather here is no trend in the currency market is sustainable forever , and although it is possable to successfully take a forex trade off a trendline bounce #6 and beyond, your probability of success decrease dramatically.

2.) trade forex trend lines that are “ gradually sloping ”. If the trend line is at or above 45 degrees, the probability of it holding are less than a trend line of only 20 degrees. Very rarley does the market proceed in one direction without letup at a steep angle. Quite often after a fast drop or rise in price the forex market ordinarily quickly reverses thus eleminating any steep trend line and therefore it is wise to avoid them. The fact is it takes a huge amount of buying or selling pressure to cause the forex market to enter a steep move, and steep trend lines even for a central bank are unsustainable over the course of time.

3.) Always have a plan to enter when and/or if the market reaches a already established trend line. Simply entering when the price hits the trend line is an option, and combined with good money management could be profitable . A second choice is to have an additional variable or requirement to provide an entry signal . One we use often in our live forex trading room is throughly covered in detail in the article entitled , Forex Entry Signals For Day Trading – When To Enter which can be found by clicking the link at the bottom of the article which will take you to our site, Day Trading Forex Live.

4.) Only take a setup during liquid periods of a trading session. During these active times such as market opens/closes, trend lines will be respected with a higher frequency, and therefore tend to be more fruitful over the course of time. In addition these liquid times produce the largest moves and thus can dramatically increase the risk/reward of a given forex trade setup because of the wide price range.

5.) As with most other forex trading strategies and scalping strategies , to give yourself the best chance of having a fruitful forex trade , only take a trend line trade setup in the direction of the overall trend. This ensures that even if the trend line does not hold, you still have the overall underlying trend in the favor of your trade setup. As you begin to be more comfortable with this day trading forex strategy and thus more profitable. It is at this point only that you should you start to look for forex trend line bounce trade setups against the overall direction of the forex market.

When you trade the forex market with a plan your success rate sky rockets significantly over simply taking a forex trade when it “looks good”. If you follow these 5 straight forward rules to effectively day trade trend lines will strengthen any forex day trading strategy that takes advantage of frequently occurring intra-day trend lines. If you would be interested to learn more about day trading trendlines in the forex market, in addition to our other forex trade setups, feel free to check out our site Day Trading Forex Live.

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