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Technical analysis focuses on trend analysis and explains how basic trend-following techniques are used.
Flip through the individual charts:

The trend line is one of the most basic tools that traders use to identify trends. It also one of the most valuable tools.
To draw an upward trend line on a chart, all you need to do is connect at least two local lows with one another. So, to have an upward trend, the second low has to be higher than the first. An upward trend line is a straight line drawn between a sequence of lows as shown in the following chart.
A local low on a chart illustrates a dip in the price, indicating the lowest price resulting from a price correction from a preceding trend.

Example of an upward trend. The upward trend line is drawn along the rising lows. An upward trend line requires a third low before traders can classify it as a confirmed trend.

As the trend gathers momentum, you often have to draw a second or third trend line to follow the trend.




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