Trend Line: A Tool to Determine Market Direction
A trend line helps you determine which direction the market is heading and understand when it is best to trade.
What is a trend line?
A trend line is a straight line that connects the lows in an uptrend or the highs in a downtrend. It shows the direction of price movement.
How to use a trend line?
• Uptrend line: The price is rising and the line connects the lows. This gives a buy signal.
• Downtrend line: The price is falling and the line connects the lows. This gives a sell signal.
💡 Tip: Trend lines help you determine when a trend will reverse or continue.
