If the Forex market moves up and then drops back down some, the highest point that it has reached before the drop down is now resistance. As the market goes back up again, the lowest point which it reached before it starts to climb again is now the support. An uptrend line, in its most basic form, is drawn along the identifiable valleys, or support areas.
Candlestick charts are quite often used in forex trading to depict the trends of an asset. They may seem quite complicated but we explain what a candlestick chart is and how to use one to help you trade better.