Trading Indicators

Detailed explanation of various trading indicators used in technical analysis.

How to draw trend lines the right way

How to draw trend lines the right way

Trading Indicators
Trend lines form one of the basic blocks of technical analysis and thus are very important to a chartist. Simply put, trend lines are nothing but sloping support and resistance levels and in fact price behaves similarly as it does when approaching a traditional (horizontal) resistance or a support level. Despite its simplicity, trend lines can often turn out to be subjective and thus can confuse a chartist if indeed they have plotted a trend line correctly. The most important aspect of trend lines is that they tend to work on any time frame and in any market which is why they are one of the most popular technical analysis tools for a chartist. It is possible to trade only with trend lines although they are mostly used in conjunction with other methods. A good example of trading based off t...