[B]Student’s Question:[/B]
Daily chart shows broad downtrend since mid-July, but a very wide channel. Is that how an instructor would see it?
[B]
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[B]Power Course Instructor’s Response:[/B]
You have the right idea here…the pair is definitely in a downtrend.
When drawing support and resistance or channel lines, however, we would want them to come into contact with the candles at least three times for them to be considered valid.
Note the Daily chart on the NZDUSD pair below with trendline resistance in place.
