Connect Points:
Draw a straight line through these points. For an uptrend, connect the low points. For a downtrend, connect the high points.
Usage:
Support and Resistance:
Trend lines can act as support (price tends to bounce off the trend line) or resistance (price tends to reverse direction when reaching the trend line).
Breakouts:
When the price breaks through a trend line, it may signal a change in the direction of the trend.
Weakness:
Trend lines aren’t always exact and can look different depending on how you draw them. It’s best to use them with other tools to get a clearer picture.
A trend line is like a drawing line that shows if the price is going up, down, or staying the same. It helps you decide what to buy or sell based on where the price is going.
