Trendline
A trendline connects swing points to map the current trend, acting as dynamic support or resistance.
A trendline connects swing points and maps the trend, acting as dynamic support or resistance. The more touches it survives, the more meaningful it is; a decisive break warns the trend is ending.
A trendline is a straight line drawn through consecutive swing highs or lows to map the direction and slope of a trend. In an uptrend, the line under the rising lows acts as dynamic support; in a downtrend, the line over the falling highs acts as dynamic resistance. The more times price touches a trendline without breaking it, the more meaningful it is. A decisive break of the trendline is one of the earliest warnings that the trend is ending.
How It Works
- Uptrend: line under rising lows
- Downtrend: line over falling highs
- Validity grows with the number of touches
Trading Tips
Draw trendlines on the timeframe you trade, through actual swing points
A close beyond the trendline matters more than a wick through it
Steep trendlines break faster than shallow ones - steepness is a warning
Related Terms
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