I wanted to post this analysis for educational purposes. A lot of traders base their trades on trendlines to understand that the market is trending. Just because a trendline is broken, it doesnt necessarily mean a trend is broken as you can see here for the dollar index.
Note
It is imperative to look for confirmations on the lower timeframe to ensure price has formed a strong market structure for this break. If you know this pair well, you can also use a price filter.Note
Heavy momentum coming back into the channelNote
As you can see the trend has not been broken yet even thou price broke the trendline.Note
We have now broken back into the channel
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.