Horizontal lines in Forex are a key technical analysis tool used to identify important price levels. These lines are drawn across a chart to indicate levels of support or resistance, where the price of a currency pair tends to stall or reverse direction.

A support level is a price point where the currency pair tends to stop falling and may rebound upward, as it attracts more buyers. Conversely, a resistance level is where the price tends to stop rising and could reverse downward due to selling pressure.

Traders use horizontal lines to mark these price levels, helping them make informed decisions about entering or exiting trades. When the price breaks above a resistance line, it can signal a potential upward trend. Similarly, if it breaks below a support line, it may indicate a downward trend.

These lines are particularly valuable because they represent psychological levels where traders collectively react, often leading to increased market activity. By identifying these areas, traders can better anticipate market movements, set stop-loss orders, or take profit levels. Horizontal lines offer a visual and simple method to gauge price action, making them widely used in technical trading strategies.