Indices Trading Find a Indices Trend

How to Identify Indices Trends

To identify a indices traders need to use indices trading tools that help in determining and identifying a indices trend.

The most popular indices trading tool to identify a indices trend is:

Indices Trend Lines

A indices trend line depicts the points of support and resistance for the stock indices price, depending on the direction of the stock indices trading market.

For an upward moving stock indices market indices trend the indices trend line will shows the points of support

For a downward moving stock indices market indices trend the indices trend will show the areas of resistance

These indices trend lines are mainly used by many indices trader to determine these resistance and support levels.

Indices Trend line is a straight line that connects two 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 indices trader should know how to draw and interpret the trading signals generated by this indices 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 three things.

• The general stock indices price direction - up or down.
• The strength of the current move - and
• Where future support and resistance will be likely located

If indices trend lines forms in a certain direction then market usually moves in that direction for a period of time until a time when the indices trend line is broken.

Plotting these indices trend lines on a stock indices chart shows the general indices trend of the stock indices trading market which can either be upward or downward.

Below is an example of how to draw these indices trend line on indices charts

Indices Trend Line Tutorial: How to Draw and Trade Upward Move Using Indices Trend Lines

Indices Trend Line Tutorial: How to Draw and Trade Upward Move Using Indices Trend Lines

Indices Trend Line Tutorial: How to Draw and Trade Downward Move using Indices Trend Lines

Indices Trend Line Tutorial: How to Draw and Trade Downward Move using Indices Trend Lines