«I found your trend line indicator the most convenient and efficient to get the feeling of the market... Instantly gives me the direction and trade insights»
, ― Victor

How does trend line indicator work?

Trend Stability Index by Forex trend line indicator

Applying bar charts technical analysis of the Forex market, we detect what currency pair has a trend and how long it will remain. The idea behind TSI is simple: the trend is unlikely to reverse when there are opposite market sentiments for the constituent currencies. For example, strong downtrend on EUR/USD will occur when market has bullish sentiment for the dollar and bearish for the euro. This situation is indicated by higher TSI values.

An uptrend might be even when getting more expensive or cheaper both currencies, but no trades at this time, please. The higher is the index, the more stable and stronger trend is on the bar chart. The higher is the index, the higher is the speed of change into opposite direction of value of separate currencies making out the pair. Lower TSI values indicate weaker and more unpredictable trends.

Day trading with resistance and support levels

Resistance and support levels is a classical and well-known approach to Forex bar charts technical analysis, which is effective both as for long-term and day trading, depending on chart scale.

Both lines are parallel to each other and form the trend channel, where a lot of channel strategies work. The basis rule of such day trading Forex strategy is to trade inside the channel from its borders, after confirmation of the price turn by trend line indicator. The channel is constructed in such a way, that resistance and support levels are based at the minimum on three tops of currency bar chart. The greater number of extremes the line contains, the more likely to turn the price near it. Such high likely levels are shown thicker on chart.