Technical Analysis for Beginners

Technical Analysis of Trend-Lines

A trendline can be an upwards trend line or a down-wards trend line.

An up trend line is drawn by connecting 2 lows and the price lows are joined using straight line. This straight line displays that the prices are heading upwards because this trendline slopes up-ward - hence its name up-wards trendline. Traders then use this trend line as a support zone of price. New buy stock trade transactions are opened once the price touches the up-ward trendline.

A down trendline is drawn by connecting 2 highs & the price highs are joined using a straight line. This straight line displays that the prices are heading downward because this trendline slopes downwards - hence its name down-wards trend line. Traders then use this trend line as a resistance zone of the price. New sell stocks trades are opened once the price touches the down-ward trend line.

Course Guide: How to Draw & Trade Up-wards Trendline - Technical Analysis for Beginners

Technical Analysis for New Traders - How Do I Interpret a Trend with a Trendline?

Course Guide: How to Draw and Trade Downwards Trend Line - Technical Analysis for Beginners

Technical Analysis of Trend Lines - Trendline Technical Analysis for New Traders