CHAPTER 3

The Utility of Trendlines

Case: 11 Low To Low

We connected the lows, and INRUSD pair provided the support line. There was, however, a different technique to find support in this pair without using the typical lows to low trendline method.

Low To Low example
Low To Low

Case: 12 Parallel Support

As shown in the figure, you could have drawn the trendline by connecting the highs and then taking the parallel off the intervening low. The rectangular area shows support.

Parallel Support example
Parallel Support
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Case: 13 Support to resistance

Watch carefully market when it reaches significant support of resistance levels. When a confirmed support or resistance line broken then the broken trendline retested and support line becomes resistance and resistance line becomes support

Support to resistance example
Support to resistance

Have a look at 4 hr. price chart of USDCAD pair. Support line becomes resistance.

Case: 14 Resistance to support

As shown in the figure, resistance line becomes support

Resistance to support example
Resistance to support
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