What are trend lines?

A trend line is a diagonal line that’s been drawn between two or more price pivot points. Commonly trend lines are used to judge entry and exit investment timing when trading securities. The trend line can also be referred as the Dutch line as it was first used in Holland.

A trend line is a straight line for the price movement of a security. There two kinds of trend lines that we used at www.101trading.co.uk, those are the Support trend line and the resistance line.

A support trend line is formed when a securities price decreases and then rebounds at a price point that seems to align with at least two previous support price points.

A resistance trend line is formed when the price of securities increases and then bounces back at a price point that seems to align with at least two previous resistance price points.