Trendlines help in identifying trend directions from "summary" of Charting and Technical Analysis by Fred McAllen
Trendlines are an essential tool in technical analysis as they provide valuable insights into the direction of a trend. By connecting the highs or lows on a price chart, trendlines help traders to identify the overall trend direction. When drawn correctly, trendlines can act as a visual guide, indicating whether the price is moving upwards, downwards, or sideways. In an uptrend, trendlines are drawn by connecting the higher lows on a price chart. This upward sloping trendline acts as a support level, showing where buyers are stepping in to push prices higher. On the other hand, in a down...
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