Support and Resistance Lines Support and Resistance Lines can be both horizontal and sloping. Resistance Lines are drawn through previous pivot highs. Resistance acts like a ceiling. Depending on its strength, a resistance line can pause an uptrend and when very strong can reverse an uptrend. Its strength is determined by the length of time it serves as resistance and the number of times it has been touched by price. The longer the period of time, the greater the strength of the line. Some traders will sell at resistance lines. Support Lines act like a floor and are price areas where a currency pair finds it difficult to penetrate below the Support Line. Support lines are drawn through a previous set of lows and can either pause a downtrend or reverse it depending on the strength of the Support Line. Some traders buy at Support Lines. All Traders see the same thing. Do not BUY close to RESISTANCE LINES. Do not SELL close to SUPPORT LINES. As there is a good chance there will be reversal Trendlines It is important for traders to know which way the market is going, i.e. is it trending up or down or even going sideways. Money can be made in all these conditions, but it is important that traders "Trade with the Trend" A trendline is straight line that connects key prices areas in a move, an up trendline connects successive Higher Lows or Higher Highs and a down trendline connects successive Lower Highs or Lower Lows. Trendlines connecting successive Lower Highs is also known as a resistance line while a trendline connecting successive Higher Lows is also known as a support line. Trendlines can be defined as border lines for making buy or sell decisions. Trendlines form the boundary lines for most of the chart patterns as will be seen in later sections. A Trendline of about 45 degrees is considered the most reliable, and if steeper than that the market typically cannot sustain that kind of momentum for long. Watch to see if the market bounces off a trendline or slices through. Watch for retests of the trendline after the price has sliced through. You will often find good buying or selling points at the 3rd touch of a trendline Channels When prices trend between two parallel trendlines they form a channel. When prices hit the bottom trendline, this may be used as a buying area and when prices hit the upper trendline, this may be used as a profit taking area and vice versa. Breakouts of trendlines and support and resistance lines provide good areas for buying or selling. Channels can be upward or downward sloping and horizontal.