Today Economic Calendar GMT
High volatility expected on USD pairs
Medium volatility expected on GBP and CAD pairs

Trendline analysis in forex is a crucial price action method that helps us first and foremost in trend
detection. Trendlines measure the price move of a forex pair when the price is increasing or decreasing.
In this manner, there are two types of trendlines:
1) Bullish Trendlines
We have a bullish trend when the Forex pair is increasing. In this manner, the price of the pair records
higher bottoms (lows) and higher tops (highs). The bullish trend line should be located below the price
action and it should connect the bottoms of the currency pair. This way the bullish trend line acts as a
support for the price action.

2) Bearish Trendlines
The bearish trend has the opposite character of the bullish trend. We use a bearish trendline in order to
measure the price action during a price decrease. In this manner, the bearish trend requires the price to
record lower tops and lower bottoms. This indicates that the price is dropping. The bearish trend line
should be located above the price action during a price decrease. The bearish trendline plays the role of
resistance for the price.
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