FOREX GRAPHICS

The graphics are the technical tools used most frequently by analysts.

The most important “technical analyst” element is the definition of the trend in the market. The trend lines are determined by joining the other ends price graph.

In the case of uptrend, we identify with the union of rising lows. An upstream channel is a graphic pattern formed by two parallel and slope upwardly containing price action lines. It is also known as bullish price channel or just bullish channel. Although the price is not always perfectly fits into the channel, the lines that form said major areas of support and resistance.

Price channels graphically show the trend and are a useful tool for their ability to predict changes in the overall market trend. While the price remains within the bullish channel trend will continue, much more if you register a maximum above the top line. By contrast, breaking the bottom line is sell signal and turnaround. When there is a series of increasing minimum and maximum increasingly also higher there will be an upward trend.

In the case of downtrend, we identify with the union descend.Un maximum downstream channel is a graphic pattern formed by two parallel downward sloping containing price action lines. It is also known as bearish price channel or simply bearish channel. Although the price is not always perfectly fits into the channel, the lines that form said major areas of support and resistance.

Price channels graphically show the trend and are a useful tool for their ability to predict changes in the overall market trend in the short term. While the price remains within the bearish channel the trend will continue, much more if a minimum is recorded below the bottom line. By contrast, breaking the top line is buy signal and turnaround. When there is a series of highs and lows shrinking ever smaller also will be a downtrend.

Trend line simultaneously determines the level of support or resistance. We call support the downstream stop points while resistance points are points rise stopper. The trendline support is a potential falls. If this line is exceeded (top), it automatically changes the resistance level rise. The trendline is a resistance to the growth of the price level, however if exceeded (bottom) makes it turn into support line falls. The lines of support and resistance can also be created based on other points.

Support for falls may be the level at which the price reached a record (or local) minimum, and similar resistance to growth may be the (or local) historical high price.