TREND LINES

Basic Trend Analysis

Post categories

 

Symbol Bid Ask Spread
EURUSD 1.17245 1.17264 1.9
GBPUSD 1.37313 1.37411 9.8
USDCAD 1.27695 1.27731 3.6
USDJPY 109.969 109.998 2.9
USDCHF 0.93216 0.93238 2.2
AUDUSD 0.72633 0.72686 5.3
NZDUSD 0.70338 0.70458 12
EURGBP 0.85358 0.85416 5.8
EURCHF 1.09298 1.09335 3.7
EURJPY 128.946 128.981 3.5
AUDJPY 79.880 79.939 5.9
GBPJPY 150.983 151.079 9.6
USDSGD 1.34881 1.34948 6.7
XAUUSD 1752.74 1753.20 46
XAGUSD 22.366 22.403 3.7

The above live prices are provided solely for informational purposes, not for trading purposes, and may be delayed.

Trend Lines

The term ‘trend’ describes the current direction of the financial instrument or an investor’s outlook towards the direction of a financial instrument. A trend line can be drawn on a chart between two or more price pivot/turning points. Trend lines are commonly used to judge entry and exit points when trading.

Trend lines are probably the most common form of technical analysis in forex trading. They are probably one of the most underutilized ones as well. In their most basic form, an uptrend line is drawn along the bottom of easily identifiable support areas (valleys). In a downtrend, the trend line is drawn along the top of easily identifiable resistance areas (peaks). If drawn correctly, they can be as accurate as any other method.

 

There are three types of trends

  • Downtrend (lower highs)
  • Uptrend (higher lows)
  • Sideways trends (ranging)

Here is an example of the listed trends in action:

Trend lines
 

 

Once you have familiarised yourself with the information and concepts, you can open a Demo Trading Account to practice what you have learnt and build on your knowledge and understanding of how to trade successfully. Treat your demo account as you would your real account.