What is a Forex Trendline?

Trendlines are one of the most simple and powerful tools to analyse Forex Markets. They are constructed by connecting a series of peaks and troughs. We may have uptrends, when we have continuously higher highs and higher lows; and downtrends, when we have continuously lower highs and lower lows.

Sometimes, it is possible to draw another line – parallel to the trendline – forming an uptrend channel, or a downtrend channel.

You can draw trendlines in any timeframe you want. But like other patterns, the trendlines are more reliable when they are drawn in longer timeframes.

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