Community Forex Questions
What is the trend line?
The trend line has to be drawn by connecting at least 2 top or bottom points. However, if there are 3 points, the trend line is confirmed.
The more the price tests the trend lines like the support and resistance lines, the stronger the trend lines will be.
If you do not try to force the trend line. In that case, it will not be a valid trend line.
A trend line is a straight line drawn on a price chart to identify the direction and strength of a market trend. In an uptrend, the line connects higher lows, acting as support, while in a downtrend, it connects lower highs, acting as resistance. Trend lines help traders spot potential reversal or continuation points.

The more times the price touches the trend line without breaking it, the stronger its significance. A break below an uptrend line or above a downtrend line may signal a trend reversal. Traders also use trend lines to set entry points, stop-loss levels, and profit targets.

Trend lines are a simple yet powerful tool in technical analysis, applicable across stocks, forex, and cryptocurrencies.

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