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Trendline understanding in Forex Trading Market

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
    • Uptrend
    • Downtrend
    • Sideways
  • 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
  • Uptrend

    • An uptrend is when the price makes higher highs, and higher lows.
uptrendline in forex
uptrendline in forex

 

  • Downtrend

    A downtrend is when the price makes lower highs and lower lows.

Downtrendline in Forex
Downtrendline in Forex

 

  • Sideways Trend 

          If a currency pair does not go much higher or much lower, we can say that it is going sideways.

Sideways in Forex
Sideways in Forex

 

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

 

Uptrendline in forex in urdu
Uptrendline in forex in urdu

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.

Uptrendline in FX in Urdu
Uptrendline in FX in Urdu

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.

Down trendline in Forex in Urdu
Down trendline in Forex in Urdu

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.

Down trendline in Forex in Urdu
Down trendline in Forex in Urdu

More basic Links for newbies in Forex

More Forex Trend  videos regarding above post

More parts with youtube and use proxy

About Muhammad Shahid Memon

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