how to draw a trendline?

It is a basic question for the forex begginers. Drawing a trendline for the currency pairs is very easy way to know if the pair is bullish (rising) or bearish (falling). It will tell you also the support and resistance.

For example I will show you AUDUSD pair and the main resistance and support trendlines.

In the picture below you can see the weekly chart for AUD USD without trendlines.

The first thing you should pay attention to is the points of the price where the price stops and goes down.

So as you see that the first line should go here (downward line):

You can see that there is downward slope and there is a resistance at 0,7460. If the price goes near to the support or resistance level it is wise to be out of the market at this moment because it can go back or it can go through that resistance level but the change can be very significant.

As you can see at the next picture there is an example of this situation.

The next red line shows that there was a significant support line. When that line was broken that line is now resistance.

In next few days I will try to explain some few important things about resistance and support lines.