Descending trend - each time Forex rate achieves lower value - price movement, at which each subsequent local maximum and local minimum below previous.
Trend line is drawn by joining of the top points of local maxima:
Example of a descending trend
The more points of Forex rate values get on a straight line, the more trend is especially confirmed. One of the trend force criteria is its reaction to support and resistance levels. Break of support/resistance level means, that the dominating trend keeps the force. The more trend encounters the resistance or support, being unable to overcomes them, the more strong signal about weakness of a trend we receive, and the more probability of a turn in the future.
There is a number of the general rules of trend force definition:- The longer the trend is kept, the stronger it is, however it has a limit;- The more abruptly and more quickly trend, the stronger it is;- The long flat trend has an every prospect of the continuation;- Very abrupt trend can abruptly turn over also;- Any trend slackens, however probability of continuation of a trend in its any point above probability of its turn
Trend line is drawn by joining of the top points of local maxima:
Example of a descending trend
The more points of Forex rate values get on a straight line, the more trend is especially confirmed. One of the trend force criteria is its reaction to support and resistance levels. Break of support/resistance level means, that the dominating trend keeps the force. The more trend encounters the resistance or support, being unable to overcomes them, the more strong signal about weakness of a trend we receive, and the more probability of a turn in the future.
There is a number of the general rules of trend force definition:- The longer the trend is kept, the stronger it is, however it has a limit;- The more abruptly and more quickly trend, the stronger it is;- The long flat trend has an every prospect of the continuation;- Very abrupt trend can abruptly turn over also;- Any trend slackens, however probability of continuation of a trend in its any point above probability of its turn
No comments:
Post a Comment