Stock Indices Trading Find a Indices Trend
How to Identify Indices Trends
To identify a indices traders need to use indices tools that help in determining and identifying a indices trend.
The most popular indices tool to identify a indices trend is: Stock Indices Trendlines
A indices trend line depicts the points of support & resistance for the stock indices price, depending on the direction of the market.
For an upwards moving stock indices market indices trend the trend-line will shows the points of support
For a downwards moving stock indices market indices trend the trend will show the areas of resistance
These indices trend lines are mainly used by many indices trader to figure out these resistance & support levels.
Indices Trendline is a straight line that connects 2 or more stock indices price points on a stock indices chart and then extends into the future to act as a level of support or resistance. There are two types of indices trend: upward indices trend and downward trend. Indices Trend line is an aspect of stock indices technical analysis that uses line studies to try and predict where the next stock indices price move will head to. A trader should know how to draw and analyze the signals generated by this trend line tool.
The basis of this indices trend line analysis is based upon the idea that markets move in trends. Indices trading trend lines are used to show 3 things.
- The general stock indices price direction - up or down.
- The strength of the current move - and
- Where future support & resistance will be likely located
If indices trendlines forms in a certain direction then market usually moves in that direction for a period of time until a time when the trend line is broken.
Plotting these trend-lines on stock indices chart shows the general indices trend of the stock indices trading market which can either be upwards or downwards.
Shown Below is example of how to draw these trend line on indices charts
Indices Trend-Line Guide: How to Draw and Trade Upwards Move Using Indices Trend Lines
Indices Trend-Line Guide: How to Draw and Trade Upwards Move Using Indices Trend Lines
Indices Trend-Line Guide: How to Draw and Trade Downward Move using Indices Trend Lines
Indices Trendline Guide: How to Draw and Trade Downwards Move using Indices Trend Lines
