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When all preparations are over, you can start trading.

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One of them will go through maximums of the chart, the second – through minimums.

And if this canal is going up – it’s uptrend; down – downtrend. After estimating the trend, build a trend line (this straight line).

However, a trend is a relative term, and we can see downtrend in an hour-chart, but uptrend in a minute-chart.

Then, experienced traders realize that uptrend in the minute timeframe is a correction from the main one in the hour-chart. buying 30-second options, you should take minute-chart tendency into consideration; and if you use long-term trading, holding the order longer than half-hour, then you must pay attention only to hour trend. For experienced, tendency is the essential part of a trading strategy, that they concern looking for and bolting out signals for buying and selling; as for novices they often use only one trend for rate predicting.

Usually, traders don’t use flats, waiting until sides of such a canal will be broken.

You can see how it looks like in pictures of this article.

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For example, you’ve built a trend line at minimums of the 5-minute chart.

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