Forex Trend Lines
Trend Lines is a technical analysis method which is a trend pattern that can be used to determine a possible market condition. And if used appropriately, it can provide an appropriate signal.
There are two basic forms of a trend line, namely an uptrend or an uptrend that is formed by pulling along the bottom line or support area and a downtrend or tendency to be formed by pulling along the upper line or resistance area.
How to Draw Trend Lines
To draw a trend line is very easy which is needed are the two highest peaks or the two lowest valleys and connect them. How about it easy, here is an example.
So, if we are able to follow the trend of a price movement then we will be able to maximize profit by following the trend pattern so that the price value reaches a trend of reversal or reversal .
Type of Trend Lines
- Higher lows or rising trend patterns
- Downtrend (lower high) or downtrend pattern
Some Important Things To Look For When Drawing A Trend Lines
- Only two or the highest or lowest peak values are needed to draw a trend line but we can use 3 (three) points as confirmation
- The steeper the trend line image, the lower the reliability because the possibility to change direction is very large
- As support and resistance levels are increasingly able to test, trend lines will be stronger
- And most importantly, never balance trend lines by forcing them to suit market conditions.So if the trend lines cannot be formed, the trend lines are not yet valid.