price indicators over time. The trend lines are valuable foreign currency if placed via at least 3 channels ( downtrend market ) or at least 3 peaks ( uptrend market ) .
It is needed two or more points to build a trend line, as the more points are obtained, the accuaracy increases and resistance levels are shown by the resulting line. A break in the trend line doesn't mean a change in the movement. With a third line is posibble to confirm the validity of the line. It is common for any number of smaller secondary trends and form them within the scope of the main trend is traced. With Forex trend lines we are not capable to predict support and resistance levels, cause they're never stay at an angle, they only have horizontal movement.
Trend appears in three main ways:
- Upward Line: Shows a tilt in the market
- Downward Line: Shows a slope in the market trend
- Recession Trend: Shows that the market has started to move on the opposite direction.
