The Utility of Trendlines
Case: 11 Low To Low
We connected the lows, and INRUSD pair provided the support line. There was, however, a different technique to find support in this pair without using the typical lows to low trendline method.
Case: 12 Parallel Support
As shown in the figure, you could have drawn the trendline by connecting the highs and then taking the parallel off the intervening low. The rectangular area shows support.
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Case: 13 Support to resistance
Watch carefully market when it reaches significant support of resistance levels. When a confirmed support or resistance line broken then the broken trendline retested and support line becomes resistance and resistance line becomes support
Have a look at 4 hr. price chart of USDCAD pair. Support line becomes resistance.
Case: 14 Resistance to support
As shown in the figure, resistance line becomes support
Doji Candlestick
Doji is a very powerful candle shows a balance of supply and demand.
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Hanging Man Candlestick
Hanging Man candle which gives a very strong signal of a trend reversal.
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Inverted Hammer Candlestick
This candle implies a very strong signal of a trend reversal (to uptrend).
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Moving Average Indicator
This indicator is used on charts for trend identification.
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