Foreign exchange trend line helps us identify the direction of the trend and avoid contrarian operation. "Follow the wind" is a friend who makes money. If you want to make a profit, please follow suit first.

Theoretically, two points can form a line, but why are many people's charts full of trend lines, but they are rarely effective?

In order to find an effective trend line, we must identify more carefully:

1. The effective trend line must be a line between peaks or valleys.

2. An effective trend line must connect at least three points to be established.

3. The more points the trend line connects, the more important the support or pressure it represents.

4. The temporary penetration of the lower shadow line into the effective trend line does not mean an effective breakthrough, but the significance of the effective breakthrough is clear.

5. The longer the effective trend line is formed, the greater the significance it represents. In other words, the trend line formed in a few years is definitely more significant than that formed in just a few weeks.

6. After the trend line is effectively broken, the roles that originally supported the pressure will often be exchanged, and the original support will become pressure, and the original pressure will be transformed into support.