#中美贸易谈判

Stock Price Behavior Analysis Course

Lesson 8: Highs and Lows in Trend Structure and Trend Lines

Continuing from the last lesson, today we will learn how to identify structural changes in trends and visualize them using "trend lines".

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1. Determining Highs and Lows of Trends

• In an uptrend, you should see:

A higher high (Higher High, HH)

A higher low (Higher Low, HL)

• In a downtrend, you should see:

A lower low (Lower Low, LL)

A lower high (Lower High, LH)

These points form the "skeleton" of the trend.

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2. Methods to Draw Trend Lines

• Uptrend Line:

Connect two or more "Higher Lows" and extend to the right. This line acts as support.

• Downtrend Line:

Connect two or more "Lower Highs" and extend to the right. This line acts as resistance.

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3. Applications of Trend Lines

• Trend lines can be used as references for entry and exit: price touches the line but does not break → may be an accumulation point; breaks → may be a reversal signal.

• The steeper the angle of the trend line, the stronger the trend, but also the more unstable.