Trendlines Intro

We use Trendlines to identify a current trend in the market.

Trendlines can be used in different ways:

• To determine a markets overall direction (upward or downward)
• To identify a specific price level at which a security may experience support or resistance
• To measure the rate of change of a security’s price
• To identify bullish or bearish patterns in a market price movement (Momentum Break)

Two main types of trendlines:

• Upward trendlines are used to identify an uptrend, and are created by connecting two or more lows.
• Downward trendlines are used to identify a downtrend, and are created by connecting two or more highs.