Trendlines In Forex
What is a trendline? Trendlines In Forex unlike the traditional horizontal Support & Resistance (S/R) are diagonal S/R level that price tends to bounce off acting as S/R. They act as support when price is above them and resistance when price is below them. A trendline is simply a diagonal S/R. Why are trendline form? Trendlines in Forex are formed because of discount rate on orders placed by the big guys who have enough equity to move the market base on supply and demand. How to draw your trendlines in forex? Bullish Market: you need to draw your trendline at the bottom of price Bearish Market: you need to draw your trendline at the top You need to connect your trendline using the outer most peak, and a confirmation of at least two touches to validate the trend line. Another word for peaks is resistance. Whenever price breaches your trendline and creating a new peak you must adjust your trendline to the new peak this is because always connect your trendline using the out...