Technician

Technical Analysis Basics: Trends, Support and Resistance #forex

FX:GBPAUD   British Pound/Australian Dollar
5698 19 147
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.

My best regards
Technician
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Thanks, Tech. :-)
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Very nice analysis :). Thanks for sharing it. I think the price on the chart is at a very critical level and next 2 days would be really critical in determining the direction on of the trend. I believe we are at a strong monthly support/resistance level and therefore there is a strong probability of reversal.
snapshot
. However, looking at the last candle on the daily chart I feel that there is also a probability for a trend continuation.
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. The last candlestick was a bullish hammer and I think if tomorrow's candle gives us a higher high and a higher low then a continuation of the uptrend is still a possibility. I would highly appreciate your feedback on this possible setup. Thank you :).
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I think the red line pretty much says it all. It's either bouncing up or it'll break it and reverse. The current pin bar suggests another re-test of the recent high.
snapshot
+2 Reply
this sounds like a book from
Victor Sperandeo
+3 Reply
moorekapital jangseohee
@janseohee: Looks like ClearEdgeFX Violated TraderVic's TL Definition. There must be no price touching the TL between the two tow points: Low of Lowest Low && Low Of Lowest High Preceding the current highest Swing High
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jangseohee moorekapital
@moorekapital, U r right!
+2 Reply
Hi Tech,
Thanks for Teaching Price action.
Please Publish One article every week. Thx Rao.
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OBJECTIVE TL THAT WORKS FOR REVERSALS
GBPAUD: BUY CLIMAX  IN .....?????
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This is a tutorial, it has nothing to do with GBPAUD.
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moorekapital Technician
ok
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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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Great post! It still amazes me at how many traders skip over the basics and head straight for the "magic system"
+3 Reply
Technician TOP Akil_Stokes
Thanks Akil, Great to hear another expert agree
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Thank You technician this is so usefull!!
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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.
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Thanks for taking the time to put this out there, very informative. I will subscribe to your channel also
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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.
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