Top technical analysis is built on the assumption that prices move by trends. trend line is a very important tool in the analysis of both technical to identify trends or be used to identify price support and resistance. This is very important you understand about Support and Resistance before you proceed further material
Rising trend line ( Up Trend )
Trend lines are lines Having climbed the slope (the slope) is positive. there are at least two points that should be connected in an ascending trend, starting from the lowest point, which passed the price increase and form the lowest price that is higher than the previous low. This trend of price movement in the price will reach a point higher than the previous price increases and any movement up and will achieve a higher price point after experiencing price corrections. This means, if the price is described in the form of graphs and basic price point that occurred successively higher than the previous basis points, the price is said to follow the trend pattern indicates up.Trend ride for a while, the power demand is stronger than the power of supply (supply).
A rising trend is said to be valid as long as that happens the market price remain above the rising trend (uptrend line), equivalent to the line. if the price has exceeded the trend line that happens, it can be considered that the price trend will change.
Declining Trend line
Declining trend line (down trend) is the opposite of the ascending trend line (up Trend line). Terms lines formed if there are at least two points of the highest rates of price moves and the second point must be lower than the first point. Downtrend lines act as resistance lines, and indicates that the supply (supply) more than the demand (demand) and the bid price will be more when the price down.Down prices in combination with an increase in bids is very bearish.and shows strong sellers hit the market. outbreak showed resistance line offers began to decrease and change of trend changes begin to occur. For more details on this description please see the article about the "Dow Theory"
Horizontal trend (Side ways)
The fundamental difference with Ascending trend (uptrend) and Decreasing trend (downtrend) is on the horizontal trend line support and resistance will prevail once. Because the horizontal line is the support line and resistance line itself.
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