Analyse Trading
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Trendline

A trendline connects at least two lows (uptrend) or two highs (downtrend) to show the slope of the market.

In an uptrend, you connect successive lows: the line acts as dynamic support. In a downtrend, you connect the highs: it acts as resistance. Two points are enough to draw it; a third touch confirms it.

The steeper a line, the more likely it is to break quickly. A line forced to fit, ignoring awkward wicks, loses its value: be consistent, either on wicks or on bodies.

A trendline break signals a slowdown, not necessarily a reversal. It becomes meaningful when it comes with a change in structure. Redraw your lines as new swing points form, rather than holding on to an old one.

The full lessonTrends and trendlines: identifying the market's directionHigher highs and higher lows, a well-drawn trendline, a ranging market: learn to recognise the direction of the market and how to trade in the same direction.← Full glossary