Looking at 1 year of EUR.USD I fail to see the usefulness of trendlines as a support / resistance gauge as I see no channels or clear technical patterns such as I see in stocks. It seems to me that trendlines in forex are at best arbitrary tools. If someone uses trendlines in their trading could you please post some examples of when they can be used reliably and purposefully. Thanks in advance.
that is a good indicator but you should know not all indicators fit with traders. It is good trying to understand most of them but it is better if you try testing some, evaluate them and as a result set your own strategy fitting with your expectations and specially your skills. Scope
Right, it is important that you try out the different indicators so you can choose the one that fits you the best, I usually use only 2 at the same time, and they usually are Bollingers Bands and Williamâs percent range.
Thanks for your contribution. I can see that sideways consolidation ranges are always amenable to trendline analysis.
if you take your chart back to feb, 2008, there is an upward slopping trendline that was breached in august 2008 at around 1.55 eur/usd. You can see what has happend since then. So yes, they exist.