Trendlines - Technical Analysis from A to Z
One of the basic tenets put forth by Charles Dow in the Dow Theory is that security prices do trend. Trends are often
measured and identified by "trendlines." A trendline is a sloping line that is drawn between two or more prominent points
on a chart. Rising trends are defined by a trendline that is drawn between two or more troughs (low points) to identify
price support. Falling trend-s are defined by trendlines that are drawn between two or more peaks (high points) to
identify price resistance.
Trends - Technical Analysis from A to Z
A trend represents a consistent change in prices. Trends differ from support/resistance levels in that trends
represent change, whereas support/resistance levels represent barriers to change. A rising trend is defined by
successively higher low-prices. A rising trend can be thought of as a rising support level the bulls are in
control and are pushing prices higher.