Trend lines

Trend lines

Trend Lines are an important tool in technical analysis for both trend identification and confirmation. A trend line is a straight line that connects two or more price points and then extends into the future to act as a line of support or resistance.. These lines are used to clearly show the trend and also help in the identification of trend reversals.

A trend line may be classified as:

  • Rising trend line or uptrend line
  • Declining trend line or downtrend line
  • Sideways trend line

 

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