Understanding Trend Analysis
Bellow are a few methods that you can use to analyse the trends and how you can use them on charts.
~What are trends and different types of trends
~Who to draw a trend line
~Trend movements and trend channels
~Support and resistance levels of trends and how to identify them
1. Trends
The trends are use to determine the relative direction of a price in the market. There are 3 types of trends: bullish trends (upward trend), bearish trend (downward trend), sideways trend (neutral trend). Without a trend the prices stay flat and unchanged. For the trades to be profitable there must be a movement in price value, or there must be a trend. The forex market, a market with a lot of trends, has a lot of explosive price movement in a short period of time, which can create significant income opportunity. There is a saying: “The trend is your friend“, never forget this when you are tranding.