A trend line is a tool similar to a horizontal line.
Traders use it to draw the support and resistance levels on the chart.
The difference between the lines is that the horizontal line is drawn strictly horizontally, but the trend line follows the price and can take any direction.
The more lowest and highest prices you use to draw levels, the more accurate they are.
Use timeframes from 1 hour and longer. The older the timeframe, the more accurate the support and resistance levels.
The support level is the price level at which the asset value reverses and begins to grow.
The resistance level is the price level at which the asset value reverses and begins to fall.
The space between the sloping support and resistance levels in which the chart is located is called the price channel.
Look at the chart and determine the direction of the price movement.
Draw the support level first if a trend is ascending.
The support level is drawn on the lowest prices, that is, the lower shadows of the candlesticks.
Choose a few lowest prices and draw an upward line through them using the trend line tool.
Then draw the resistance level.
The resistance level is drawn on the highest prices, that is, the upper shadows of the candlesticks.
Choose a few highest prices and draw a line through them.
The horizontal line is a tool with which traders draw support and resistance levels on a chart.
The support level is the price level at which the asset value reverses and begins to grow.
The resistance level is the price level at which the asset value reverses and begins to fall.
The support level is drawn on the lowest prices, that is, the lower shadows of the candlesticks.
Choose a few lowest prices and draw a line through them using the horizontal line tool.
The resistance level is drawn on the highest prices, that is, the upper shadows of the candlesticks.
Choose a few highest prices and draw a line through them.
The more lowest and highest prices you use to draw levels, the more accurate they are.
Use timeframes from 1 hour and longer. The older the timeframe, the more accurate the support and resistance levels.
A false breakthrough is when the chart goes beyond the support and resistance levels but then returns to the price corridor.
Look carefully at the chart to distinguish a false breakthrough from the real one.
If the candlestick closes below the support level or above the resistance level, so that approximately ¾ of its body is outside of the price corridor, then the breakthrough is real.
If the candlestick closes below the support level or above the resistance level, so that less than ¾ of its body is outside of the price corridor, then the breakthrough is false.
It is an instrument of chart analysis used for marking boundaries on the time axis. It can be used, for example, to mark the turning point in a trend or important news on the chart.
To make a vertical line, just set one point on the chart. The line can then be moved to the left and to the right. It is possible to change the color and thickness of the line in the settings.
It is a chart analysis instrument similar in function to the “trend line” instrument. It is also created with two points on the chart. However, unlike a trend line, a ray continues infinitely to the right beyond the line segment that creates it.
Fibonacci levels are levels of support and resistance which divide the chart into defined zones created on the principle of the Golden Ratio using the Fibonacci Sequence.
To use Fibonacci Levels correctly, you need to create them correctly. Fibonacci Levels are always created based on maximum or minimum price values. They can be used for any interval (time frame). The construction of Fibonacci Levels depends on the market situation, and they can be formed in the direction of a trend or in the presence of a market correction.
During price growth (a bullish trend), Fibonacci Levels are created from right to left, that is, from the maximum price value to the minimum.
In this case, as the trend continues you must pay particular attention to the levels 1.236 (123.6%), 1.382 (138.2%), 1.5 (150%), 1.618 (161.8%), 2 (200%), 2.236 (223.6%), and 2.618 (261.8%). These levels are colored yellow by default.
During an upward price movement, these levels become resistance levels.
During a fall in price (a bearish trend), Fibonacci levels are created from right to left, that is, from the minimum to the maximum price value.
In this case, as the trend continues you must pay particular attention to the levels 1.236 (123.6%), 1.382 (138.2%), 1.5 (150%), 1.618 (161.8%), 2 (200%), 2.236 (223.6%), and 2.618 (261.8%). These levels are colored yellow by default.
During a downward price movement, these levels become support levels.
The situation often arises in the market where prices grow, then begin to fall, or, conversely, initially fall, then begin to grow. A fall after growth, or growth after a fall, is called a market correction. Fibonacci Levels help in determining the purpose of this correction.
Fibonacci levels can be used for any time interval. In trading with Fibonacci Levels, you can trade on breakthroughs or on rebounds.
Wait until a candlestick crosses one of the levels up or down. If the candlestick crosses one or more levels upward, you can open a “buy” trade.
If the candlestick crosses one or more levels downward, you can open a “sell” trade.
A Fibonacci Fan shows levels of support and resistance created from minimum and maximum prices on the principle of the Golden Ratio using the Fibonacci Sequence.
During price growth (a bullish trend), a Fibonacci Fan is constructed from left to right—from the minimum price value to the maximum. The initial position is chosen according to the minimum value, and the upper bound is created such that the 0.5 level is located at the maximum price value.
During a fall in price (a bearish trend), a Fibonacci Fan is constructed from left to right – from the maximum price value to the minimum. The initial position is chosen according to the maximum value, and the upper bound is created such that the 0.5 level is located at the minimum price value.
Fibonacci Fans can be used for any time interval. In trading with Fibonacci Fans, you can trade on breakthroughs or on rebounds.
The support level is the price level at which the asset value reverses and begins to grow.
The resistance level is the price level at which the asset value reverses and begins to fall.
The space between the sloping support and resistance levels in which the chart is located is called the price channel.