Trend or pattern line in Forex are the simplest and most technical analysis tools apical, so that everyone uses and are the basis of all other analyzes. Simply and clearly this line is what makes him is a standard you see in all the charts in Forex.
All it takes is a simple and declines is the ability to draw a straight line. Each graph neighborhood on the Internet using a Java application makes this technology available with a click. Forex pattern is a clear line sometimes without even drawing the line.
What is the trend line?
If the market moves upward, but has at least a gradual swing points, the line can be drawn under these points is a trend line in Forex. And it shows you a place and support you can expect from the place of the next support level.
On the other hand, if this is the Forex market moves descending, the link this swing of the top spots will give regions and points of resistance in the downward trend line, not just the past and present, but the future as well. This works as a point of entry into the market.
Then there is the horizontal move. It is important to trend line, and therefore there must always be a market for trading Forex. Linking swing points, it will provide for the Forex trader a clear picture of the Forex market, and its place in the present and give him the possibility of where you could move toward him.
Deliberative scale
Trend line includes not only a single line (though it may be as well). If the Forex trader to take points from the bottom points and drew a line, and then took the top points of the swing points and drew a line, the chart gives you a deliberative scale. There you have here the support and resistance level. You can expect the points of entry and exit. Add a line or two others, the graph will also give a place to put points stop loss.
When the Forex market penetration outside a certain range, it provides an opportunity for a new set of lines. Resistance becomes support (in case the market was going up) and support becomes resistance (in case the market was bearish). If you want to create a new range of deliberative from here, you must chart a new pattern Forex line depending on the situation and the size of the swing points available.
Lines intersecting
Deliberative range of Forex do not always move in parallel lines. Often, these lines will come close to each other and intersect. Therefore, when this happens, there will be less likely deliberative scale and will show a picture of a breakthrough. At that point of intersection, the Forex market must be closely monitored because this is an important matter in the habit in the field and support the new resistance. Trend line is the basis of everything in Forks, and we must focus on.