The low points of the market trend are continuously being raised. By connecting the two low points in the market, we form a straight line, which results in an upward trend line. As long as the price remains above the upward trend line, the trading mindset should primarily focus on going long. The direction of the trend line indicates the direction for entering trades. When the price breaks below this upward trend line, the upward trend may potentially turn into a downward trend, or it might rise again after a period of sideways consolidation. Generally, when encountering a break below the upward trend line, one would reduce their long positions, and then decide whether to close all positions based on the subsequent market conditions.
