Drawing a trend line on a chart Forex provides us with very valuable information. Not do the trend lines show a trend in progress, but also allow you to represent points as levels of support and resistance .In addition, the trend lines will help determine the good points of entry and exit, you will have a better way to calculate when to take profits and when to enter the protective stops.
This tool is very simple but very powerful, as well as key moments in a reversal of trend, or when the market price starts to move in the opposite direction. Therefore, we must learn how to draw trend lines to make our trading profitable?
The answer is yes. The trend lines are drawn upward to the chart below, or by combining all the various low points. The connection of at least two such minima will create a trend line. This is why when the trend is set to change, then our trend line will be crossed by the price, which will give us a sign that the price can start moving in another direction.
In a trend downward, the trend line itself is drawn through the connection of several maximum points. A trend line confirms its effectiveness when the price meets this line. Obviously, the more points of minimum or maximum are connected to each other, the stronger the trend line and, consequently, the same trend.
Learn how to successfully track the trend lines is essential in forex. Without knowing how to do this you do not have a powerful tool for understanding the direction of the trend. Considering that the best way to trade is to follow the trend, here is that the trend lines are perfect.
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