How Do You Analyze a Indices Trend Line?

A indices trend line can be an upwards indices trendline or a downwards indices trend line.

An up indices trendline is drawn by connecting 2 lows & the stock indices trading price lows are connected using straight line. This straight line shows that the stock indices trading prices are heading upwards because this indices trend line slopes upward - hence its name upwards indices trend line. Indices traders then use this indices trend-line as a support zone of the stock indices trading price. New buy stock indices trades are opened once the stock indices trading price touches the upward trend line.

A down indices trendline is drawn by connecting 2 highs & the stock indices trading price highs are connected using a straight line. This straight line shows that the stock indices trading prices are heading downwards because this indices trend line slopes downward - hence its name downwards indices trend line. Indices traders then use this indices trend line as a resistance zone of the stock indices trading price. New sell stock indices trades are opened once the stock indices price touches the downwards indices trend line.

Course: How to Draw and Trade Upwards Indices Trendline

How Do I Interpret Indices Trendline? - How Do You Analyze Indices Trend Line?

Course: How to Draw & Trade Downwards Indices Trend Line

Technical Analysis of Indices Trend Lines - Trend Line Indices Trading