Determine the trend in the currency market is the most important task in the method of technical analysis. That is, by definition, trend, and hence all the wave counting of the market, then transactions are correct. According to CFO, who has experience with these questions. Best determine the trend movement of Candlesticks – a type of currency chart. The first step is to determine what the trend you are going to mark up, bullish or bearish. formation. If you are going to note the trend line bullish trend, then you need to select the point at which will be applied to the trend line. It is advisable to choose the three points, but you can build the line and at two points.
The more points are selected to construct a trend line, so this trend stronger and more powerful. Choose to read as follows: we take two Japanese candles, no matter to what period and at their bottom ends of built bullish trend. The closer the trend line is inclined to the plane, so this trend is weaker and any moment may reverse. It also depends on the strength and importance of support and resistance levels. If, however, able to construct a trend line in three or more points, then this tells us that the market there is a very strong trend, and it will continue for a long time. Exactly the same thing happens with the bearish trend. Here are all the rules concerning the power trend, the only thing that is different is its construction. If the uptrend is built at the end of candlesticks, then the bearish trend needs to build on the peaks of candlesticks, spending at the same time the trend line in the lower direction. Defining the beginning and end of a trend tells us trend line break.