When you draw a trend line, it can quickly give you 3 things that can help you in your trading:
Trend direction
Possible points of market fluctuations
Clarity without trading indicators
Trend direction
Although some traders (most) will use moving averages to determine the direction of a trend, a properly drawn trend line will show you the general direction of the market. When a trend line breaks, it can give you a warning about a potential change in trend direction.
Possible points of market fluctuations
The price moves in waves with peaks and troughs. Trend lines can highlight areas on your chart where the next price reversal may occur, especially in the direction of the dominant trend.
Clarity
Too many traders use too many trading indicators on their trading chart. They have repetitive information (for example, some traders will use two or more momentum indicators), and all this does is lead to confusion and analytical paralysis. Trend lines keep it simple and won't hide the most important part of any chart: the price.
Every Forex trader has one strategy that he likes to use. One of the most popular methods used is supply and demand, but many traders are confused between the concepts of supply and demand and support and resistance.
So, what is the difference between these concepts? Support and resistance are levels or lines where prices have already been determined, while supply and demand are new levels or zones where prices have not been determined.
Supply and demand are two factors that determine any price in the foreign exchange or any other market. Supply and demand trading occurs when a currency pair reaches a level of friction called the sell zone. This happens when sellers decide that there are more opportunities to sell at an inflated price. The opposite also happens when pairs fall to a lower level, in the demand zone. In this case, buyers decide that buying a currency pair is of great value.
Zones are observable places on the chart that the price has previously approached several times. Supply and demand are the zones that are more specific and accurate on the charts. Support and resistance are broader areas relative to price levels.
These two zones are often the most critical levels on the chart and are probably the best levels to trade after they are created. These are the levels where there are a huge number of outstanding orders.
A reversal between support and resistance levels can be either a positive or a negative change in the prevailing trend. This is very important for analysts and market participants, because depending on the signals of these patterns, they adopt a trading strategy for the same security. best online casino canada real money
Trend direction
Possible points of market fluctuations
Clarity without trading indicators
Trend direction
Although some traders (most) will use moving averages to determine the direction of a trend, a properly drawn trend line will show you the general direction of the market. When a trend line breaks, it can give you a warning about a potential change in trend direction.
Possible points of market fluctuations
The price moves in waves with peaks and troughs. Trend lines can highlight areas on your chart where the next price reversal may occur, especially in the direction of the dominant trend.
Clarity
Too many traders use too many trading indicators on their trading chart. They have repetitive information (for example, some traders will use two or more momentum indicators), and all this does is lead to confusion and analytical paralysis. Trend lines keep it simple and won't hide the most important part of any chart: the price.
Every Forex trader has one strategy that he likes to use. One of the most popular methods used is supply and demand, but many traders are confused between the concepts of supply and demand and support and resistance.
So, what is the difference between these concepts? Support and resistance are levels or lines where prices have already been determined, while supply and demand are new levels or zones where prices have not been determined.
Supply and demand are two factors that determine any price in the foreign exchange or any other market. Supply and demand trading occurs when a currency pair reaches a level of friction called the sell zone. This happens when sellers decide that there are more opportunities to sell at an inflated price. The opposite also happens when pairs fall to a lower level, in the demand zone. In this case, buyers decide that buying a currency pair is of great value.
Zones are observable places on the chart that the price has previously approached several times. Supply and demand are the zones that are more specific and accurate on the charts. Support and resistance are broader areas relative to price levels.
These two zones are often the most critical levels on the chart and are probably the best levels to trade after they are created. These are the levels where there are a huge number of outstanding orders.
A reversal between support and resistance levels can be either a positive or a negative change in the prevailing trend. This is very important for analysts and market participants, because depending on the signals of these patterns, they adopt a trading strategy for the same security. best online casino canada real money
