In forex trading analysis, there are trend lines that are very important in using a chart. Regardless if the market goes in a direction that represents a zigzag line, the replacement of lower and upper part of the zigzag allows you to plot lines that connect to the important lows or most commonly called as troughs, while the highs are called peaks. There is software that identifies all these and it is called algorithms. It is also present in your computer so whenever you need to make a graph, you can open it so the whole process will be easier for you.
When it comes to trend lines, there are 2 points that are essential and the 3rd one will only confirm your contract point. Usually, a trend chard should be drawn when using troughs and peaks. It is must be in a parallel form and should be drawn in an opposite side using trade channels. All the lines are the borders of the channel. These lines are very essential for the analysis of the current date of the forex market because they usually provide the precise price variations that can be very useful in determining the right currency you will invest.
The upper trade channel borders and bottom are all called resistance and support lines. Each of the peaks will represent the price levels that surpass the buying and selling pressure. These are all called resistance levels. The trough usually represents different selling pressure levels and the buying pressures too.