Forex technical analysis-summary of trading using support and resistance
 
Summary of support and resistance
When the market rises and then falls, the highest point reached before it falls is the current resistance.
As the market continues to rise, the lowest point reached before the market begins to rise is the current support.
It is important to remember that the horizontal support and resistance levels are not exact figures. In order to screen out these fake breakouts, you should consider support and resistance as a “region” rather than specific numbers.
One way to help you find these support or resistance areas is to draw support and resistance on a line chart, not on a candle chart.
Another thing to remember is that when the exchange rate breaks through a certain resistance level, this resistance level may become a potential support. This situation may also appear on the support level. If the exchange rate falls below a certain support, the support may become a potential resistance level. 

Trendline 

The trend line is the most common technical form. In the upward trend, the upward trend line is connected to the bottom of the candle line. Its role is to provide support for the exchange rate; in the downward trend, the downward trend line is connected At the top of the candle line, it is regarded as a resistance area for the exchange rate.
 
There are three types of trend lines: 

  1. The upward trend line (low points continue to rise)
     
  2. Downtrend line (high points continue to decrease)
     
  3. Sort the trend line sideways (interval fluctuation)
     
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    The way to draw up the channel is to draw a parallel trend line at the same tilt angle on the basis of the existing up trend line, and move the line until it touches the nearest high point. While you are drawing the upward trend line, you should be able to draw the upward channel.
     
    The way to draw down the channel is to draw a parallel trend line at the same tilt angle based on the existing down trend line, and move the line until it touches the nearest low. When you draw a downward trend line, you should be able to draw a downward channel.
     
    When the exchange rate touches the trend line below the channel, the area will provide a good buying opportunity; and when the exchange rate touches the trend line above the channel, the region will provide a good selling opportunity.
     
    There are three types of channels:
     
  4. Ascending channel (the high point keeps rising and the low point keeps rising)
     
  5. The descending channel (the high point keeps decreasing and the low point keeps decreasing)
     
  6. Horizontal channel (interval fluctuation)
     
    Trading with trend lines
     
    Because in this tutorial, we are committed to making the content taught easy to understand, we have divided the market behavior that may occur in the context of price test support and resistance into two types: rebound and breakthrough, and this will also serve our Provide guidance on trading strategies.
     
    When we seize the opportunity of a rebound to trade, we will find some information that can confirm that the support or resistance level will be stable. Before we enter, we will wait for the price to experience the first rally, rather than simply buying or selling on the trend line. The advantage of this is that it can avoid sudden and rapid price fluctuations and break through support or resistance levels.
     
    Under ideal conditions, the support and resistance levels will remain stable forever. In the perfect trading world, whenever the exchange rate touches the main support or resistance level, we just happen to be able to enter or exit the market, and thus achieve huge gains. However, the fact is that these support or resistance levels are usually broken.
     
    Therefore, it is not enough to use the price rebound for trading. When the support or resistance level is broken, there are two trading methods: the aggressive trading method and the conservative trading method.