The trend is a fundamental concept of technical analysis. Another name for the trend - the trend of the market.
Trend - this is the direction of the market, as well as the movement of prices in a given interval. The price in the market may be in three states: rising, falling, and stable. The price effect on the trend, determine its species.
1. The trend may be the bottom-up, with the price increases, lower prices rise fluctuations.
2. In descending trend price falls, the maximum values of the prices are lower.
3. The steady state of prices, as it varies in the same range, no trend.
By identifying the trend, a trader can execute transactions in the foreign exchange market. Ascending trend involves the purchase, down - the sale, if there is no trend of operations is generally not done.
To build a trend, it is necessary to use lines of support and resistance. Line of resistance carried out through prices, which have a maximum value. When a trend is absent, from the horizontal support and resistance, when the trend in the currency market Forex is present, the data lines are slanting. To build upward trend, you need to build on the two minimum values of the price. For the downward trend are the basis for constructing the maximum value of the price in the market.