TRENDLINE

Trendline is a very common instrument used in technical analysis. In fact, its use is very important, because best trading strategy, it is a trend-following trading price movement. If we can draw a trendline correctly, then these cables can be as accurate as other methods of trading. And then prepare yourself to better recognize simple line called this trendline.
Very important as well for you to be able to identify the trend itself, because of failure to recognize the trend is the beginning of your failure to make profits in trading. OK, before proceeding any further, we will discuss the types of trends first.
Basically there are only three trends: rising (uptrend), down
(downtrend) and flat (sideways). We will discuss them one by one here.

1. Uptrend
It's simple: the ascending trend is the state when prices are going up. But yet there are prerequisites to determine that the market is in an uptrend.
Prerequisites uptrend is their series of PEAK of the higher and TROUGH (valley) We're also given higher interest rates as well. Because the word "series", there should be more than one. That is, thither must be a minimum of two peaks in the two valleys MORE AND HIGH.

2. downtrend
Unnecessarily complicated-complicated: the downturn is the state when prices are going down. Merely as the uptrend, there are also prerequisites.
Prerequisites downtrend is their series of PEAK increasingly valley and TROUGH (valley) We're likewise lower. Because the word "series", then there should be more than one. That is, thither must be a minimum of two peaks in the two valleys MORE AND LOW.

3. Flat (sideways)
Well, the answer to that is simple too. It means not sideway movement uptrend and downtrend instead. What does it means? Yes flat course. Remain there up and down, but is restrained in a certain range. In other language, there must be on the uptrend or downtrend can not be found.
We already recognize how to identify trends, now then we will try again with a more familiar trendline.
To be able to take in a trendline well, it must be recognized first trends. In the state uptrend, drawing a trendline by connecting at least two levels of the valley (trough). While the downturn circumstances, pull in the trendline by connecting at least two cusps (peak).
At this moment, trendline acting as musical accompaniment. The break of the trendline is an initial signal that the uptrend will likely cease.
Here serves as a resistance trendline. The break of the trendline is likely an indication that the downward trend will end.
If sideway how? Take in two horizontal lines as much as possible each menghubngkan least two peaks / valleys.
Afterwards that, what else should be drawn? Well, that's all for now. Simple, right?

Things that need to be fixed
There are at least four things that we demand to consider with regard to this trendline.
1. Valid Trendline connecting at least two peaks or valleys, only to confirm the trendline itself, we need a point of peak or valley all three.
2. The sloping trendline that we image, then the stage of power will be less and will be more easily penetrate.
3. Trendline will be valid if more details are connected with it.
4. Do not attempt to draw a trendline that was "valid-invalid" . If it is not possible for you to take in a trendline that is valid, look for other alternatives. Rear line: do not be forced to draw a trendline, because what is more important is to identify the trend itself.