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Forex Technical Analysis using a trend line

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Forex Technical Analysis using a trend line



One of the simplest, and therefore - popular tools of technical analysis is the trend line.
It would seem that it is easier? Couple the two price minimum or maximum on the chart with one line and all. However, this simple action helps a lot in real trading. With the help of the trendline trader always sees the trend in the market. Therefore, it gives him the opportunity to take a position on pullbacks from the graphs of small formations in the direction of the trend older period, and vice versa, to make the decision to close the deal when the price crosses the current trend line. (Pic.1)



With the trend lines are very convenient to denote known graphic shapes, ie those price patterns, without which the Forex technical analysis is simply impossible. (Pic.2)


For example, you can set the rectangle flag or pennant, which will show us the flat, ie, the state of the market when the price fluctuates within a certain range. In this case, technical analysis Forex help recall the words of Charles Dow, who said that the price after the correction is likely to go in the direction of the current trend, than it would start to deploy. Decide during the analysts with the normal trend line in this case is not difficult and Forex beginners. Not remain on the sidelines and fans of Elliott Wave. With the trend lines in conjunction with the MACD or AO, it is easy to disassemble movement into its constituent waves formation. (Pic.3)


Here is the symbiosis of the trend line and some indicator or set of indicators, already works well as a turnkey solution trading system. And the main point in this tandem will, no doubt, the trend line, as it is in contrast to the indicators showing the history, will display the actual events that are currently taking place in the Forex market. Minimum number of settings and display the veracity of what is happening do trendline versatile tool with which to conduct a qualitative and actual technical analysis Forex.




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