In this article we review the Support (S) and Resistance (R) in identifying the current market trend. Review leads in the event of a price movement that is having the volume loud enough price, at which point support and resistance can be found. Also in the event of a downward movement or rise to the top. In the previous article has been reviewed regarding support and resistance that may provide clues to how the demand and Market supply can be identified using the SR. This is the second part of the support and resistance which has the direction of the trend.
That need to be prepared before analyzing is create an image with the trend line. The first thing to remember is to draw the lines and not just doodles, but more than that to draw a trend line on the graph of an art than a science.
Today you will be directed to the making of the line. Maybe in the hearts of anyone asks, "How?"
The way is easy, try to follow the 2 points below
In the pair AUD / USD below, you can underscores trendline connected from the ground up using the line. In the event of a bullish trend, the lines are placed as examples circled in green color. Once you create a line, then the rule is:
1 Because the upward sloping trend line, then the signal is sought is a "buy"
2. trend line is used to focus the signal generating "buy"
Once the trend lines were created, while the price of the up-trend conditions, then your next task is to make sure the price touches the support point trend, which has made the line. If the price has touched support and no signal moves up in conditions of up-trend, then you have had a buy signal accurately.
Now you can try on the pair USD / CHF. Focus on current trends indicate that prices still have a down-trend. Try your line on the top of the candle is in the pink circle that becomes a trend line resistance. The more often the touch line, the more obvious the trend. Once you have a trend line, then the rules must be adhered to are:
1 Because the downward sloping trend line, then the wanted signal is "sell"
2. trend line is used to focus the signal generating "sell"
Once the trend lines were created, while the price of the down-trend conditions, then your job is to make sure the price touches the trend resistance point, which has made the line. If the price has been hitting resistance and signal a decline in the condition of a down-trend, then you have to have accurate sell signal.
