Trend lines are straight lines that connect two or more price points on a chart to identify and confirm trends. In technical analysis, trend lines are a fundamental tool that traders and analysts use to identify and anticipate the general pattern of price movement in a market.
What is a trendline in trading?
Trendlines are a visual representation of support and resistance in any time frame. They show direction and speed of price, and also describe patterns during periods of price contraction. Trendlines indicate the best fit of some data using a single line or curve. A single trendline can be applied to a chart to give a clearer picture of the trend.
What are trendlines & how do you use them?
Trendlines are easily recognizable lines that traders draw on charts to connect a series of prices together. The resulting line is then used to give the trader a good idea of the direction in which an investment's value might move. In this article, you'll discover how to use this tool.
