How To Draw A Trendline
For successful trading in the Forex market traders use analysis. The quality of the conducted analysis of the market in the end will depend on the profitability of the deal. A trend line is a technical analysis tool. It is designed to identify a trend in the market, and the identification of slow moments, change of direction and a reversal of the current trend. In other words, the trend line is necessary in order to determine what is now the trend (bullish or bearish or maybe now the market is in a sideways motion)? How strong or weak current trend? Is it possible to change the direction of the price movement and when?
To learn how to draw a trend line, you need to understand what the trend is. The trend is a series of higher maximum and minimum (uptrend) and a sequence of a lower maximum and minimum for the downtrend. To draw a trend line is necessary to draw a line on the main areas of support (minimum) in an uptrend, and along the main resistance zones (maximum), on a downward trend. Drawing of the trend line does not require any special skills you have. Quite simply, you have to find two basic maximum or minimum, and to connect them by a straight line.
For the drawing of trend lines, you will need two marks. But to ensure the correctness of the drawing of the line, use the third mark. Pay attention to the angle of inclination of the trend line, than steeper the angle of inclination so it is the less robust and likely it will be broken soon. And if the sloping angle, there is a high probability that the trend will continue for a long time. Thus, the trend lines are an indispensable tool in conducting a technical analysis, so it is important to know how to use them in trade.