The trend line is a basic indicator of technical analysis. Its main purpose is to determine (and emphasize) the present price direction.
To put this indicator on the chart, define at least two highest and two lowest points, then connect them with the Trend Line tool on UEZ Markets platform.
The upward trend is determined if both the maximum and minimum points of the price chart are gradually increasing. When the price drops below the previous low, we can talk about a trend reversal.
Downward Trend Chart
The downward trend is defined as a sequence of lower highs and higher lows.
Side Trend (Flat) is determined when the highs and lows are approximately at the same levels.
Pivot Point in Forex
Trend lines assist traders in recognizing the pivot point at which the price is more likely to move up (1) or down (2).
Remember that the more evidence of the upward (downward) direction you see, the stronger it is. Breaking a strong trend is harder than the one just being started.