Trends and Trendlines

A trend is the general direction of price over time.

• Uptrend — higher highs and higher lows.
• Downtrend — lower highs and lower lows.
• Range — price moves sideways between support and resistance.

Drawing trendlines

Connect the swing lows in an uptrend (or swing highs in a downtrend) with a straight line. As long as price respects that line, the trend is intact. Trading with the trend is generally safer than fighting it.