Trendline
A straight line drawn along successive highs or lows to visualize a trend’s slope.
Also called: trend line
In plain language
An uptrend line connects rising lows and acts as dynamic support. A downtrend line connects falling highs and acts as dynamic resistance.
Two points define a line; the third touch is what makes it worth anything. Until price has respected it more than twice, it is a guess with a ruler.
Trendlines are subjective. Small changes in which wicks you connect produce meaningfully different lines, which is why they work better as context than as precise trigger levels.
Why it matters
A trendline break is a clean, visual way to define invalidation, especially for trades held through a sustained move.
Common mistakes
- Redrawing the line whenever price breaks it, so it can never be wrong.
- Using a two-touch line as if it were established support.
- Placing stops exactly on the line, where probes are most likely.
Keep exploring
These concepts are connected. Understanding one usually makes the next one easier.
A sustained directional bias in price, built from a repeating pattern of highs and lows.
A price area where buying has repeatedly been strong enough to stop a decline.
A price area where selling has repeatedly been strong enough to stop an advance.
When price moves decisively beyond an established support or resistance level.
The pattern of highs and lows that describes whether a market is trending or ranging.