Forex Trend Lines 101 Learn How Traders Spot Profitable Opportunities
Trend lines are one of the most frequently used tools in technical analysis, and for good reason. They help the trader to see the intended movement further out, which allows them to understand market structure and forecast potential entry and exit points. Trend lines are like a roadmap that illustrate where the market has been, and where it may potentially go next. Let’s just say this at the outset: trend lines are not magic crystal balls that provide a peek into the future. Markets are inherently random, and due to that, even the best drawn trend lines will fail. However, if utilized correctly, they can help you clearly structure your thought process and allow you to trade with increased confidence, as opposed to guessing. What Is a Trend Line? Definition and Types Explained A trend line is a purely straight line that connects two or more price points to demonstrate the direction of market movement. You are quite literally drawing a line connecting dots, however, instead of...