Consequently, there is three type of currency trend according to their direction and duration by which you will completely understand trendline and you know how to draw trendline into the chart. But keep it in mind that you first know Trend ???
Trend & Trendline in Forex
- Trend by Direction
- Trend by Duration
- Major Trend (1 to 3 Years & Best viewed Daily Chart) and
- Intermediate Trend ( 3 weeks to 3 months & Best viewed Hourly Chart) and
- Minor Trend (within 1 week & Best viewed 15 minutes Chart so.
And An uptrend is when the price makes higher highs, and higher lows so we consider Uptrend.
Hence A downtrend is when the price makes lower highs and lower lows due to that we know downtrend.
So If a currency pair does not go much higher or much lower, we can say that it is going sideways.
How to Draw Up trendline into Chart
While If an Up trendline is to be drawn. An uptrend must have one endpoint at the lowest low point to current bar Low in the graph. like I am showing you in below chart
There are bars that bisected between line A-B, therefore, B needs to regress to a low in which no bars bisected between line A-B
The result looks like below chart.
higher lows thus giving us support lines.
How to Draw Down trendline into Chart
Hence If a trendline is to be drawn. A downtrend must have one endpoint at the highest high point to current bar high in the graph.
Therefore there are bars that are being bisected between line C-D, therefore, D needs to be regressed to a High in which no bars are bisected between line C-D
The result looks like this.
Lower highs thus giving us a resistance line. so-called
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