In theory, two points can form a line, but why do many people see trend lines all over forex trading charts, but it is rarely effective?
foreign exchange investment
To find a valid trend line on a forex trading chart, you must be careful to identify:
1. A valid trend line must be connected to peaks and peaks or troughs to troughs.
2. An effective trend line must be connected with more than three points before it can be established.
3. The more points connected by the trend line, the greater the significance of the support or pressure it represents.
foreign exchange reserves
4. The shadow line breaks through the effective trend line for a while and does not represent an effective breakthrough. The significance of an effective breakthrough is relatively clear when it is broken through the closing price.
5. The longer an effective trend line is formed, the greater its significance. That is to say, the trend line formed in several years is definitely more significant than the trend line formed in only a few weeks.
6. After the trend line is effectively broken, the roles of the original support pressure are often reversed, the original support becomes pressure, and the original pressure becomes support.
