Breakthroughs in the trend line are often used to analyze the price trend, which is a new position, or if you are looking for an opportunity to close your position, then a breakthrough in the compact trend line often constitutes a wonderful starting signal. Of course, other technical signals must always be considered. In addition, when the trend line supports or blocks, it can also be used as an entry point. Buying on the upper side of the main uptrend line or selling on the lower side of the main downtrend line are all effective countermeasures for timing.

Application of trend line in foreign exchange trading;

First of all, it is absolutely useful for our analysis to make clear that the trend is a reflection of the exchange rate trend.

Second, the trend line applies the principle of inertia to represent a changing trend of things in the process of movement. For example, in the process of market rising, it takes a gentle speed to enter the downward situation again.

Thirdly, the channel concept of wave theory and the trend line principle have similar results.

Trend line theory can also be regarded as a part of tangent theory, which shows the upward or downward trend of exchange rate by connecting different points. Or when the curve is relatively smooth, the reaction reflects the consolidation trend of the market. According to the length of time, we can say that trends can be divided into three different categories: short-term, medium-term and long-term. Long-term trend is composed of several different short-term trends. Similarly, the short-term trend line is the most important.