Forex Trend & Trading Channel
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Trends & Channels in Forex Trading
We’ve been throwing the word trend around quite a lot lately, and you may be wondering what they are. Simply put, a forex trend is a pattern of movement in one direction. The best way to see a trend is to put a trend line on your graph. The safest way to measure an uptrend is to plot a line of rising support, while the way to measure a downtrend is to plot one of falling resistance.
If you do it right, a forex trend line is a great tool for technical analysis; if you do it wrong it’s a great way to cut a hole in the bottom of your trading account.
Let’s look at the “right way” to use forex trend lines…