Forex uptrend and downtrend

Trend lines are probably the most common form of technical analysis in forex trading.

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In their most basic form, an uptrend line is drawn along the bottom of easily identifiable support areas valleys. In a downtrend , the trend line is drawn along the top of easily identifiable resistance areas peaks.

To draw forex trend lines properly, all you have to do is locate two major tops or bottoms and connect them. It takes at least two tops or bottoms to draw a valid trend line but it takes THREE to confirm a trend line.

How to Use Trend Lines in Forex - dikykex.web.fc2.com

The STEEPER the trend line you draw, the less reliable it is going to be and the more likely it will break. Like horizontal support and resistance levels, trend lines become stronger the more times they are tested.

And most importantly, DO NOT EVER draw trend lines by forcing them to fit the market. It is not history, facts, or intelligence that guide most investors through the final phases of a bull market; it is hopes and wishes.

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Uptrend

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