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Trend Lines

Topics: Technical Indicators

Trend Lines is a forex technical indicator used to see the trend of the market. Usually market tend to trend higher or lower with a geometrical patterns. This trend line can be formed by draw a diagonal line between two or more price pivot points.

The trend lines can be divided by support and resistance trend lines. A support trend line formed when the price decreases and rebounds at a pivot point that aligns with at least two previous support pivot points. A resistance trend line formed when the price increases and then rebounds at a pivot point that aligns with at least two previous resistance pivot points.

Trend lines are an easy and widespread technical analysis approach for the assessment of entry and exit investment timing. To a trend line historical data, typically in the format of a chart. In setting the trend lines, it is important to select a chart on the basis of a price interval period, directed with your trading partner strategy. Short-term traders tend to use charts based on interval periods, such as 1 minute (the price of the security is drawn on the map every 1 minute), with longer-term traders, with price charts on an hourly, daily, weekly and monthly interval Period.

Trend Lines

The technical analysis is primarily concerned with the price changes. Anything that can influence the price development is of interest to a technician. Technical analysis indicates that, because every possible bit of information is included in the price of a security it is not necessary to explicitly analyze the fundamental economic, political, etc. factors that may influence the price.

Since all information is already available in the current price, just a study of the price movement is required. It is not explicitly demonstrated that the prices must trend, technical analysis is based on empirical data and simple common sense to say that prices do trend. Dow Theory provides plenty of empirical time-tested support that prices trend towards a technician.

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Commodity Selection Index (CSI)

Commodity Selection Index (CSI) is a good forex technical indicator often used in forex technical analysis. Commodity Selection Index (CSI) was developed to help select commodities that fit short-term trading.

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