Currency trend are divided into three types according to their direction and duration by which you will completely understand trendline and you know how to draw trendline into 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)
- Intermediate Trend ( 3 weeks to 3 months & Best viewed Hourly Chart)
- Minor Trend (within 1 week & Best viewed 15 minutes Chart
- An uptrend is when the price makes higher highs, and higher lows.
A downtrend is when the price makes lower highs and lower lows.
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
If a Up trendline is to be drawn. An uptrend must have one end point at the lowest low point to current bar Low in the graph. like I am showing you in below chart
There are bars that are being bisected between line A-B, therefore, B needs to be regressed to a low in which no bars are bisected between line A-B
The result look like below chart.
higher lows thus giving us support lines.
How to Draw Down trendline into Chart
If a trendline is to be drawn. A downtrend must have one end point at the highest high point to current bar high in the graph.
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 look like this.
lower highs thus giving us a resistance line.
More basic Links for newbies in Forex
More Forex Trend videos regarding above post
More parts with youtube and use proxy