Price action and chart patterns
Trendline trading
A line connecting at least three higher lows in an uptrend (or lower highs in a downtrend).
Why it works
It visualises the slope of the trend. Each touch that holds confirms buyers are still defending higher and higher prices.
How to use it
Look for buys on the third or later touch of a rising trendline, with the stop below the last swing. A close through the line warns the trend may be ending.
The typical mistake
Forcing a line through candle bodies so it fits. A valid trendline connects clear swing points.
FAQ
What is Trendline in trading?
A line connecting at least three higher lows in an uptrend (or lower highs in a downtrend).
How do you trade Trendline?
Look for buys on the third or later touch of a rising trendline, with the stop below the last swing. A close through the line warns the trend may be ending.