How Do I Analyze a Trend Line?
A trend line can be an upwards trendline or a down-wards trend line.
An up trend line is drawn by connecting two lows and the price lows are connected using straight line. This straight line displays that the prices are moving upward because this trendline slopes up-ward - hence its name up-wards trendline. Gold traders then use this trend line as a support zone of price. New buy trade transactions are opened once the price touches the up-ward trendline.
A down trend line is drawn by connecting two highs and the price highs are connected using straight line. This straight line displays that the prices are moving downwards because this trendline slopes downwards - hence its name down-wards trend line. Gold traders then use this trend line as a resistance zone of the price. New sell trade transactions are opened once the price touches the downward trend line.
Course Guide: How to Draw & Trade Up-wards Trendline
How Do I Interpret Trendline? - How Do You Analyze Trend Line?
Course Guide: How to Draw & Trade Downwards Trendline
Analysis of Trend Lines - Trend Line Trading
More Lessons & Topics:
- How Do You Register Demo Account in MT4 Trading Software?
- What is ECN XAU/USD Account Meaning?
- How Many Gold Patterns are Used in Gold?
- How to Place MT5 Volumes Trading Indicator on Gold Chart
- How to Use Gold Sell Limit Order on MT5 Platform
- Best Combination of Trading Analysis Trading Indicators for Gold
- Gann Trend Oscillator Gold Indicator Analysis
- How to Place Bears Power Gold Indicator on Trading Chart in MT4 Platform
- What is XAU USD Margin Call Meaning?
- Gold Place a XAUUSD Sell Limit Order on MT4 Platform
