Trendline

Trend line in online forex trading currency - a straight line that connects the significant high and low points on the graph to illustrate the levels of support and resistance.

Support Line - a line connecting the lower points on the graph.Resistance line - a line that connects the highest point on the graph.

Effective to form a trend line, requires a minimum of three points.

12.1 The numbers show the number of lines of support and resistance. While there are no exact statistics about the effectiveness of the use of trend lines, many traders recognize that their use can be profitable when trading with 5 -, 10 - and 20-minute charts.

You can use the tench trend as follows:

1. Buy with support. This is a simple procedure. Once formed the support line, buy when prices fall in support of the trend.

2. Sell at resistance. Also, a simple method: to sell the currency as soon as the established line of resistance and confirm the trend of falling prices.

3. Sell on the breakout below support. Once established support for the lowering of prices below the support level is a signal of weakness.

4. To buy the breakout above the resistance level.