How to Draw Trend Lines – Technical Analysis
A trend line is a straight line drawn on a price chart that connects multiple price points. Typically, this line is drawn to connect lows (in an uptrend) or highs (in a downtrend) or in ranging/sideways markets over a certain period, showcasing the general price trajectory. The main idea is that prices tend to move in trends, and these lines help in identifying and confirming these trends.