The main levels of design are an essential part of technical analysis.
The problem is that the technique can be very confusing for beginners, because marking one of them on the graph is very subjective!
The main reason for this is the amount of conflicting information there, as traders are really frustrated to get the right process.
If you give traders the same graph, and ask them for each line by line, you'll probably see two completely different results.
In this guide, I'll show my way to draw the trend line, and we'll give you an overview of how to use it.
Directory Directory
What are the trend lines?
How to draw trendy lines
Trend line reflection business ideas
Breakout trend line events
Channel structures
Price pressure
A model of the speaker
Breakthrough Science
Trend line indicator
What trend lines are actually used for technical analysis?
These guys will pop up all your analytical writing materials 101 '.
Their primary function is to highlight support and linear resistance.
Often when the market moves (leading to new highs or lows), the price will tend to stick to a linear level - that is, we are defined as a trend line.
Emerging markets will tend to generate a rising linear support ...
A trend line that acts as support in the bull market
Do you notice how the opposite direction moves in this structure?
When shown, we can use these lines to predict the next reversal point in the market and look for bullish reversal signals there.
The opposite is true for the downside scenario ...
Trend line as resistance
So it is clear that the bearish situation is just a reversal.
The opposite direction paths at the free line end like a linear resistance level. We can use it as an early coup point.
Thus, this common type of technical analysis includes the interpretation of these lines as linear support and resistance.
When a line breaks, the market can return and retest it as a new support or resistance level.
Then supports trend line resistance
Above: an example of what he had previously held as a resistance that would then be respected as new support as the market retreated and retested.
What I have shown so far are basic functions, but we can do a lot with them. In the rest of the article, you will be accompanied by other events in the trend line like ...
Interference in direction (flags)
Classic Breakthroughs
Example of reflection signals of linear structures
Consolidation structures (good and bad)
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