Tuesday, February 5, 2008

Wesley Pipes /wikipedia

Lesson 10 -

lines upward and downward

The trend lines are the most common form in technical analysis and can say they are the most underrated and underutilized also .

If they are drawn correctly can be extremely precise, but often this does not happen because they try to set "artificially" the results agree with the position taken.

In its basic form, an uptrend is drawn from the union of minimum are increasingly high, identifying an oblique support area. If it is a downward trend line is drawn connecting the peaks identifying the area of \u200b\u200bresistance. We always advise

draw trend lines sobe a line chart, because it takes only logoff prices and also deliver greater convenience for its realization.

The figure below shows an example of a trend.




... and tendency to break down and creating a new trend


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