$BTC

What is a trendline?

A trendline, or trend line, is a straight line that can determine the future price trend. It serves as a support and resistance line that helps investors identify entry points.

When we connect two or more points on a chart, we get a trendline. A trendline is the straight line connecting peaks to peaks and bottoms to bottoms.

How to quickly determine a trendline

To identify a trendline, you first need to identify 2 peaks and 2 bottoms to connect them together.

For an Uptrend line, connect two bottoms together, noting that the later bottom must be higher than the earlier bottom.

For a Downtrend line, connect two peaks together, noting that the later peak must be lower than the earlier peak.

The steeper the trendline, the lower the reliability and the higher the likelihood of a price reversal.

Do not try to draw a trendline that fits perfectly with the market; this will only skew your predictions.