AtoZ Markets Ė If we are to name a common form of technical analysis, we can say trend lines. However, even though it is considered common, it is also an underutilized one as people do not use it to its fullest.

What are trend lines?

A trend can guarantee a hundred- percent precision as long as it was drawn precisely as well. The only problem is that traders are having a hard time using this kind of form. Traders usually do not or cannot correctly draw them. Some do not even try to fit the line with the market rather than the opposite way.

We form technical analysis when we make assumptions of price trends, and the primary roles of trend lines are trend identification and confirmation. Trend lines are straight lines and connect two or more price points. It further extends to the future and becomes a line of support or resistance. If you are aware of support and resistance level principles, we can say that most are similar to the trend line principles.

In short, this article helps us to understand trend lines, but reading and understanding support and resistance before everything else will be a big help.

Check out the full article at AtoZ Markets.