Forex line trading in the UK is a tactic that identifies important levels of market support and resistance. The technique involves drawing and observing the price trend, determining its strength, as well as looking at other important information, such as prominent price bounces.

In order to accurately draw a Forex trend line, you will need to select a time period that reflects the history of the price trend. It is recommended to choose a longer timeframe, such as weekly or monthly. This will help you locate the most prominent high and low points, allowing you to create a more accurate line by connecting them. Ideally, you want to identify an upward or downward trend, with higher highs indicating an upward trend and lower highs identifying a downtrend.

You will then need to observe the price movement, focusing on whether it breaks through or returns to the trend line. This will indicate the optimum moment to place long (buy) or short (sell) orders. During an upward trend, you will be buying and generating a profit when the price bounces up or crosses above the uptrend line, and selling and generating a loss when the price bounces down or returns to the downtrend line.

How to Short a Currency: Forex Shorting Strategies Simplified

Forex is the world’s most traded market, with billions of pounds changing hands each day. It is used by individuals, companies and governments to speculate on the future direction of currencies. At City Index, you can trade forex pairs by taking a long position if you think a currency pair’s value will go up or a short one if you believe the pair will fall. Our online platform provides a wide range of risk management tools, including stop-loss orders that will close your trade out if it moves against your position.