🔹 Trendlines – How to Follow Market Direction
One of the key rules in trading is:
📌 "The trend is your friend."
But to follow the trend, you need to recognize it — and trendlines help you do that visually.
🔸 What Is a Trendline?
A trendline is a straight line drawn on the chart that connects either:
Higher lows in an uptrend
Lower highs in a downtrend
It helps you see the general direction the market is moving in.
🔺 Uptrend:
Price forms higher highs and higher lows.
You can draw a trendline below the price, connecting the lows.
📈 Ideal for buying dips.
🔻 Downtrend:
Price forms lower highs and lower lows.
You draw the trendline above the price, connecting the highs.
📉 Ideal for shorting or avoiding long entries.
✅ Why Trendlines Matter:
Help you follow momentum
Act as dynamic support/resistance
Can signal a trend reversal if broken
Tip: The more times price touches the trendline without breaking it, the stronger it becomes.
📌 In Part 5, we’ll explore popular technical indicators like RSI, MACD, and Moving Averages.
