Trend Lines Explained
A trend line connects a series of higher lows (uptrend) or lower highs (downtrend) into a single sloping line that maps the trend's angle and support.
Drawing a trend line
In an uptrend, connect the rising swing lows; in a downtrend, connect the falling swing highs. A valid line needs at least two touch points, and it is confirmed by a third — the more clean touches, the more traders watch it and the more it matters.
Draw across the price extremes where the market actually reacted, and treat the line as a zone, not a razor-thin edge. A line you have to force through the candles is not a real trend line.
Bounces and breaks
While price holds above a rising trend line, the uptrend is intact and touches of the line are potential continuation entries. A decisive close through the line warns the trend's angle has failed — often preceding a break of structure.
Trend lines pair naturally with horizontal support and resistance and with triangles and wedges, which are built from converging trend lines.
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Play Chart Bound free → Try today's Call the Candle →Frequently asked questions
How do I draw a trend line correctly?
Connect at least two swing lows in an uptrend (or swing highs in a downtrend) where price clearly reacted. A third touch confirms it. Treat it as a zone, and don't force it through candles.
How many touches make a valid trend line?
Two points define a line, but a third touch is what confirms it as a meaningful trend line that other traders are watching and reacting to.
What does a trend line break mean?
A decisive close through the trend line signals the trend's angle has failed. It often precedes a change in market structure, though a single wick through is not confirmation.