Forex trend line analysis

Forex trend line analysis

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  a trend is when prices move in a zigzag fashion but still follow an imaginary path or a trend in one direction. Trend lines connect significant lows in an uptrend and they connect significant highs in a downtrend, creating dynamic resistance.

  trend lines are probably the most common form of technical analysis in forex trading. They are probably one of the most underutilized ones as well. If drawn correctly, they can be as accurate as any other method. Unfortunately, most forex traders dont draw them correctly or try to make the line fit the market instead of the other way around.

The identifiable resistance points are also called peaks in forex trade. The downtrend line is also referred to as descending trend line. Sideways trend sideways trend is also called ranging trend. Draw trend lines now you just need to locate two main top points or two major bottoms and join them.

A trend line can be drawn on a chart between two or more price pivotturning points. Trend lines are commonly used to judge entry and exit points when trading. Trend lines are probably the most common form of technical analysis in forex trading. They are probably one of the most underutilized ones as well.

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Forex trend line analysis

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