Trend Line (Charting Tool)

A trend line is a visual representation on a chart used to identify price trends within a specific timeframe. Traders commonly employ trend lines to determine whether the price is trending upward, moving sideways, or declining. By connecting at least three price points on the chart, trend lines help distinguish key areas of support and resistance. Prices remaining above the trend line and forming support are indicative of a bullish trend, while prices dropping below the trend line and struggling to break above resistance are signs of a bearish trend.