Forex Trend Lines
When you see a trend forming, you can make money (sometimes a lot of money) by trading in the same direction as the emerging trend. ‘The trend is your friend’, as currency traders say. For this reason, identifying the trend at an early stage is the most important thing to learn in forex technical analysis.
It is easy enough to see established trends. If you draw a line above the low points of the candlestick shadows while prices are generally rising you will see the slope of the uptrend. Similarly if you draw a line above the high points of the shadows while prices are generally falling, you will see the slope of the downtrend.
There are also sideways trends when the prices are fluctuating up and down between two points but not breaking beyond them. In this case the lines drawn above and below the shadows will be just about horizontal.
Sidebar: you can set the time period covered by the candles from within your account. Take a wider view to identify a trend, perhaps with 4 hour periods, then focus in with 15 minute and 5 or even 1 minute charts to make your trade.
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