Following the trend is a foreign exchange trading rule that every foreign exchange trader knows, and the foreign exchange trend line is an important tool used by traders to judge foreign exchange trends.

Traders can predict the trend of the foreign exchange market relatively accurately by analyzing the foreign exchange trend line. However, the changes in the foreign exchange trend line are also exquisite. The trend line is generally broken, and the price has to cross the drawn trend line. The upward trend no longer sets new highs or the downward trend no longer sets new lows. In a downward trend, the price of foreign exchange speculation crosses the previous short-term rebound high point upward or the price downward crosses the previous short-term retracement low point in an upward trend.

  1. If it is an upward trend, if the market price has crossed the previous price, but failed to continue to rise, and then fell to the previous high, then the market trend may reverse at this time.
  2. If it is in a downtrend, if the foreign exchange price in the trend line falls below the previous low, but fails to continue to fall, and then rises back above the previous low, then the market trend may reverse.

The method of judging foreign exchange trends varies from person to person. But the general law of the foreign exchange trend and the overall direction are consistent. At the same time, a good trading plan is the key to ensure that traders follow the trend line for analysis and make orders smoothly.