Understanding fundamental analysis and the impact of economic indicators.
Trend line is a basic indicator of technical analysis. Its main purpose is to determine (and emphasize) the present price direction. To put this indicator on the chart, define at least two highest and two lowest points, then connect them with the Trend Line tool on the FxPro platform.
Look here, we put two levels on the chart. Unlike the trend line, support (below) and resistance (above) are always horizontal. To build these levels by yourself, you need to determine the points where the constant price stop is regularly taking place. The chart on the right displays the resistance level is an upper limit of the price channel, and the support level is its lower border.
In technical analysis, trading channels are another tool by which to determine the exact right moment to open a trade. Mainly, they appear on the chart due to the Trend lines. Mostly, it is an area between two parallel lines within an uptrend/downtrend.
You'd be surprised, but price charts often draw certain shapes, which are called graphic models (or patterns). At first glance, finding such models on a live chart may seem rather difficult. However, with days of practice, you will learn to determine which figure is being formed right now and make trading decisions based on this information.
