TREND LINES

TREND LINES

TREND LINES:- Up trends and downtrends are hot topics among technical analysts and traders because they ensure that the underlying market conditions are working in favor of a trader’s position, rather than against it. Trend line helps to identifying the movement of stock market. Up trends and downtrends are hot topics among technical analysts and traders because they ensure that the underlying market conditions are working in favor of a trader’s position, rather than against it.
A trend line is a line drawn over pivot highs or under pivot lows to show the prevailing direction of price. Trend lines are a visual representation of support and resistance in any time frame. They show direction and speed of price, and also describe patterns during periods of price contraction.
TYPES OF TREND LINE :-
⦁ Upward Trend Line :- Image shows an upward sloping support line. It is made by at least two reaction lows. This line dimonstrates that buyers are more aggressive than sellers since demand is stepping in at higher lows. The line is indicative of a market that is trending higher.

⦁ Downward Trend Line:- Image shows a downward sloping resistance line. It is derived by joining at least two reactions high. It shows that sellers are more aggressive than buyers as evidenced by the sellers willingness to sell at lower highes.

⦁  sideways trend :-

A sideways trend is the horizontal price movement that occurs when the forces of supply and demand are nearly equal. This typically occurs during a period of consolidation before the price continues a prior trend or reverses into a new trend.
If the price has regularly rebounded from support and resistance levels, traders may try to buy the security when the price is nearing support levels and sell when the price is nearing resistance levels. Stop-loss levels may be put into place just above or below these levels in case a breakout occurs.

⦁ Trend line work as support and resistance:- some times market moves in a particular manner it takes trend line as support or resistance or moves in an upward or downward direction. When it reaches the upper trend line then it reacts as resistance and the market starts to retrace and when it reaches the second trending line then it works as support then the market starts to move upward:- some times market moves in a particular manner it takes trend line as support or resistance or moves in an upward or downward direction. When it reaches the upper trend line then it reacts as resistance and the market starts to retrace and when it reaches the second trending line then it works as support then the market starts to move upward

About Author

Related posts

crypto trading strategies

What are the upcoming crypto trading strategies of 2021?

Upcoming crypto trading strategies of 2021 – Dollar-Cost Averaging: Dollar-Cost Averaging (DCA) is the act of performing normal, typically more modest, acquisition of a resource over the long haul. There are a couple of various approaches to see this, however how about we start with a circumstance where you...

Read More