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.