The first lesson in this chapter is to review the price levels and areas where a market trend starts, pauses, or reverses. We will show you that these prices are a narrow price area or range, rather than a specific price, and we will also tell you how to find these areas on the chart. Then we'll talk about trendlines, as well as uptrendlines, downtrendlines, and horizontal trendlines. The next step is to learn about the "channel" related knowledge. If we take the trend line theory one step further and draw a parallel line following the previous up or down line, then we get a channel. Specifically, when drawing an upward channel, you only need to draw a parallel trend line at the top of all prices along the angle of the upward trend line; on the contrary, if you are drawing a downward channel, you only need to draw a parallel trend line at the bottom of all prices along the angle of the downward trend line. When the price touches the lower edge of the channel, a buy point may be generated; if the price touches the upper edge of the channel, a sell point may be generated. Like simple trend lines and channels, the moving average is another trend line that helps to distinguish price trends, which eliminates the impact of abnormal volatility of individual prices or single-day prices. We will examine the difference between moving averages and single trend lines, trend channels and their various variations. The last type of trendline to talk about is the Bollinger Bands. Combining the advantages of channels and moving averages, Bollinger Bands can indicate support/resistance levels, as well as the momentum of price movements.

4.1 Price levels of support and resistance

Resistance/support levels are not insurmountable barriers. The support level refers to the price that may encounter support when the exchange rate falls, so as to stabilize the price. It corresponds to the resistance level. The resistance level refers to the price that may encounter pressure when the exchange rate rises, thereby reversing the decline. When the exchange rate is running, resistance and support are interchangeable. Specifically, if a major resistance level is effectively broken through, then this resistance level will in turn become an important support level in the future; on the contrary, if an important support level is effectively broken down, this price level will instead become a resistance level for future exchange rate rises up. Traders pay close attention to resistance/support levels to study their impact on price volatility. Here, we'll learn how these support/resistance levels provide structural support to the market and identify points where some traders are most likely to look for trading opportunities.

4.2 Support resistance of single trend line

Single Trend Line is a forex trend indicator. It is one of several support/resistance indicators that can be used in forex trading. When plotted on a chart, a single trendline can show forex traders a line that is a probability edge with a bargain price. This lesson will explain single trendlines and how they can be used to help determine forex trade entries and exits.

4.3 Support-resistance trendlines - channels

In this lesson, we will learn how to use channels as support/resistance indicators. If we take the trend line theory one step further and draw a parallel line with the previous upward or downward line, then we can get a channel. Specifically, when drawing an upward channel, we only need to draw a parallel trend line at the top of all prices along the angle of the upward trend line; on the contrary, if we are drawing a downward channel, we only need to draw a parallel trend line at the bottom of all prices along the angle of the downward trend line.

4.4 Support resistance trend line - moving average

In this lesson, we will learn how to use moving averages in forex trading. Like a single trend line and price channel, a moving average can also be used as a trend line to confirm a price trend, which eliminates the influence of a single price trend or a single-day price trend fluctuation. The moving average is to divide the sum of the closing prices of a certain period of time by the period to form a curve, which is used to display the historical fluctuation of the exchange rate, and then reflect the future development trend of the exchange rate. The moving average theory is one of the most commonly used technical indicators today. It can help traders confirm existing trends and judge upcoming trends.

4.5 Support and Resistance Trend Line - Bollinger Bands

In this section, we will introduce a new indicator - Bollinger Bands. The Bollinger Bands are essentially a simple moving average system that appears in the form of a channel. The upward track is composed of the average superimposed on the standard deviation, not just the usual single average. The Bollinger Bands combine the advantages of channels and moving averages, and can present support resistance and market momentum to us at the same time. The Bollinger Bands ratio indicator has several advantages, which we will examine in this lesson.