Forex trend lines

Trend Lines
Forex trend lines are probably the simplest form of technical analysis that currently exists. And they are also probably one of the least used.

If they are plotted correctly, trendlines can be as accurate as any other method. Unfortunately, many traders do not trace them as they should or they try to make the line fit the market, not the other way around.

In its most basic form, the trend line in cases of uptrend is drawn in the lower part of the easily identifiable support areas or valleys.

In cases of downward trend, the trend line is drawn high in resistance areas or peaks.

 

[caption id="attachment_539" align="aligncenter" width="531"] Forex trend lines[/caption]

We can also see that in addition to bullish and bearish trends there may also be at times a lateral trend in which the market oscillates without going up or down in a clear way.

NOTE: This article is not an investment advice. Any references to historical price movements or levels is informational and based on external analysis and we do not warranty that any such movements or levels are likely to reoccur in the future.