Trendline is the most easiest and traded technical analysis device in Forex trading. In this post I want to share about one of the contributions of trend line. With this trading tool we can determine support and resistance levels of the market price fluctuations in our forex trading chart. All we have to do is draw a line above or below market price, this line connect at least 2 support levels or connect 2 resistance levels.
As we can find in the picture above, we make a trend line connecting the two resistances (1 and 2). Market prices tried moving close this trend line (point 3). For most foreign exchange traders are usually trading this trend line to take short trading position.
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