Technical Analysis Basics: Trends, Support and Resistance #forex

FX:GBPAUD   British Pound / Australian Dollar
What is an Uptrend:
Uptrend: A series of higher highs and higher lows. Each highs surpasses the previous high and each low is either above or equal to the previous low.

If you are able to spot this structure on any chart, then you can clearly say the trend is up.

The opposite is true for a downtrend.

How the trend is reversed?
A break of the structure of higher highs and higher lows is the main threat for an uptrend and could lead to a reversal from an Uptrend to a Downtrend.
Note that its not always the case some times the trend resumes to create a new highs or move in sideways manner.

Support and Resistance
Support and resistance levels are simply those highs and lows that you draw on the chart. For example. The latest higher low in the chart above is the most important support level in the uptrend. Why i say the most important? because simply if the price breaks below that higher low, the the structure of higher highs and higher lows is no longer intact, as we will have a new low that's below the latest higher low as shown on chart. Read(2) on chart.

If that happens, a trader should be very careful, as the price may create a new lower high now somewhere below the latest high and resume the move lower to create a new lower low.

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Always good job! I translated your posts to introduce TradingView Korea.
Thank you Technician for the useful tip. Mind to share the article that has the good illustration on the basic skill, that I would like to refresh and enhance my basic knowledge.
Thanks for taking the time to put this out there, very informative. I will subscribe to your channel also
Simple and powerful advise. As long as you keep applying the very same principle AFTER the reversal, you will never loose money. Thank you Technician.
Thank You technician this is so usefull!!
Great post! It still amazes me at how many traders skip over the basics and head straight for the "magic system"
+3 Reply
Technician PRO Akil_Stokes
Thanks Akil, Great to hear another expert agree
Core of technical analyses. If you master the above you are establishing a very solid and strong foundation for success.

Problem is that most traders are trying to ANTICIPATE trend change and not capitalize on excisting trends until they see proof of change (as stated above in the chart).
+6 Reply
I agree, I think many traders spend too much time looking for the "magic system" that will bring them money right away, instead of taking the time to really learn the basics.
+2 Reply
Very true, this is the main issue, thats why they get lost.
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