Technical Analysis : Basic Movement

1. Support
A term used in technical analysis indicating a specific price level at which a currency will have the inability to cross below. Recurring failure for the price to move below that point produces a pattern that can usually be shaped by a straight line. A support level penetrated becomes resistance.

2. Resistance
A term used in technical analysis indicating a specific price level at which a currency will have the inability to cross above. Recurring failure for the price to move above that point produces a pattern that can usually be shaped by a straight line. A resistance level penetrated becomes support.
3. Trend
Trend is simply, the overall direction prices are moving, UP, DOWN, OR FLAT.
Classification:
Short term - less than 3 weeks,
Medium term - 3 weeks to 6 months
Long term (major term) - more than 6 months.
An up-trend line is a straight line passing through the "rising" troughs of an up-move. The importance of a trend line is increasing with every additional touching point, confirming the trend lines value. A reversal of the trend is indicated with a violation of the up-trend line.A down-trend line is a straight line passing through the “falling” troughs of a down move. The importance of a trend line is increasing with every additional touching point, confirming the trend lines value. A reversal of the trend is indicated with a violation of the down-trend line.

A Neutral Trend (No trend, sideways trend) means there is no direction.

4. Channel
When prices trend between two parallel trend lines they form a Channel. When prices hit the bottom trend line this may be used as a buying area and when prices hit the upper trend line this may be used as a selling.