What's an Example of a Forex Trend? Identifying Trends in - Forex Trend Definition

A trend in forex is the tendency of prices to move in a particular direction for a period of time in a general direction upward or downward.

Trends can be analyzed using forex trend lines.

Trend line analysis helps traders to define the direction of the FX market. Trend lines connect a series of price highs or price lows forming a sloping trend which represents the general movement of the forex price.

For an upwards sloping line this is known as an up trend - trend-line plotted is known as an upward trend line.

For a downwards sloping line this is known as an down trend - trend-line drawn is known as an downward trend line.

Upward Trend Line - Forex Trend Strategy

An upwards trend-line is drawn below upward sloping pattern by connecting at least two lows. This will draw a trend-line that illustrate general direction of the market upward.

The example below shows how price moves when it is moving in an upward trend. The forex price will move upward forming support levels.

Since the forex market moves in a zigzag manner forex traders normally draw a trend-line which shows the general upward trend direction.

What is an Examples of a Forex Trend? Identifying Trends in - Forex Trend Definition

An up trend occurs when price makes consecutive higher price highs & higher price lows. Each price high is higher than the previous price high - higher high, and each price low is higher than the previous price low - higher low.

Up trend lines gain more validity each time price touches but does not penetrate it. An up trend remains in place until this series of higher price highs & higher price lows is broken - trend-line break reversal signal.

Downward Trend Line - Forex Trend Strategy

A downward trend line is drawn above pattern formed by consecutive lower highs, it must connect at least two highs, with the most recent high being lower.

Since price moves downward in a zigzag manner traders normally draw a line which shows the general downwards direction. In forex market technical analysis, this general direction is referred to as the Forex TREND by traders. This down trend line is plotted on a Forex chart showing the resistance areas (bearish forex trend market direction).

What is an Examples of a Forex Trend? Identifying Trends in - Forex Trend Definition

A down trend occurs when the price makes a series of lower highs and lower lows. Each price high is lower than the previous price high - lower high, and each price low is lower than the previous price low - lower low therefore showing bearish price movement.

Down trend lines gain more validity each time price touches but does not penetrate the trend line. A downtrend remains the general direction until this series of lower price highs & lower price lows is broken - trend-line break reversal signal.