They are probably one of the most underutilized ones as well.
If drawn correctly, they can be as accurate as any other method.
Unfortunately, most forex traders don’t draw them correctly or try to make the line fit the market instead of the other way around.
In their most basic form, we draw an uptrend line along the bottom of easily identifiable support areas (valleys).
We know this as an ascending trend line.
In a downtrend, we drew the trend line along the top of easily identifiable resistance areas (peaks).
We know this as a descending trend line.
How do you draw trend lines?
To draw forex trend lines properly, all you have to do is locate two major tops or bottoms and connect them.
Uhh, is that it?
Yep, it’s that simple.
Here are trend lines in action! Look at those waves!