What is the Trendline?
Trendlines are the most commonly used form of technology analysis in the Forex market today.
Trend
The trend line shows the direction of the price. This is support or resistance, a directional line of price movement that shows you to be connected at a certain angle. Below are two important questions.
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What is the market trend?
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What price is support or resistance?
It can be very useful if you can draw this accurately.
Unfortunately, most traders can not draw accurately or just create lines to market.
Trendlines show the trends of Forex charts
Uptrend Line
The Uptrend line is the concatenation of the bottom point of the support point, which can be easily defined. The following steps are required to draw this uptrend line.
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Find two supported levels – one higher than the previous one
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Draw the price point of the two support levels.
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Draw lines with extended support price points foreseeable in the future
Down trend Line
The downtrend trend line connects the peak of the price.
To draw such a downtrend line, follow these steps:
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Look for two determined resistance levels – one point is lower than the previous one.
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Draw a line connecting the peak of the price of these two resistance areas.
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Find the point where resistance prices will increase in the future. That is, Uptrend easily draws the lowest point that can be defined as support, and then downtrend easily connects the highest point of resistance and draws it as follows.