What is a trend line? 📏

Trend lines are diagonal lines on charts. They connect data points to help traders spot trends. Think of them as a tool for navigation on price charts.

〽️ Types. There are two main types: ascending (uptrend) and descending (downtrend). Uptrends show rising prices, downtrends indicate falls.

🔍 How to use. Trend lines mark where prices tested the trend and bounced back. As long as they hold, they're valid. Uptrends mean strong demand, and downtrends signal supply exceeding demand.

🧩 Support and resistance. Trend lines also reveal support and resistance levels. When these levels break, the market can flip dramatically.

✏️ Drawing. Use at least three points to draw a reliable trend line, like in the pic above. The first two define the trend's direction, and the third tests it. Also, choose scale settings wisely.

Trend lines are handy, but not foolproof. Traders may draw them differently. Combine them with other technical indicators.

📌 Save and share with a friend

#trading_tips #EducationalContent #notcoin #altcoins #BinanceLaunchpool