Trendline
A sloped line joining successive highs or lows
What it is
A line drawn along a series of rising lows or falling highs, used as a moving level rather than a fixed one.
What it may suggest
Repeated touches that hold suggest the slope is being respected. A decisive close through it suggests the pace of the trend has changed.
Where it fails
The most subjective tool on a chart. Small changes in which points you pick move the line a long way, and it is easy to draw one that fits the story you already have. Horizontal levels are far less arguable.
Also called trend line, descending trendline, ascending trendline, trendline rejection.
More chart patterns
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