đč Trendlines â How to Follow Market Direction
One of the key rules in trading is:
đ "The trend is your friend."
But to follow the trend, you need to recognize it â and trendlines help you do that visually.
đž What Is a Trendline?
A trendline is a straight line drawn on the chart that connects either:
Higher lows in an uptrend
Lower highs in a downtrend
It helps you see the general direction the market is moving in.
đș Uptrend:
Price forms higher highs and higher lows.
You can draw a trendline below the price, connecting the lows.
đ Ideal for buying dips.
đ» Downtrend:
Price forms lower highs and lower lows.
You draw the trendline above the price, connecting the highs.
đ Ideal for shorting or avoiding long entries.
â Why Trendlines Matter:
Help you follow momentum
Act as dynamic support/resistance
Can signal a trend reversal if broken
Tip: The more times price touches the trendline without breaking it, the stronger it becomes.
đ In Part 5, weâll explore popular technical indicators like RSI, MACD, and Moving Averages.