Trend Line

A trend line is a straight line drawn across successive swing lows in an uptrend or successive swing highs in a downtrend, marking the slope of the move. Two touches define the line; a third touch that holds is what gives it standing.

An uptrend line acts as rising support: each pullback that respects the line keeps the trend's rhythm intact. A break of the line does not automatically reverse the trend, but it does end the specific pace the line measured, which is often the first objective warning that the move is tiring.

Trend lines carry a subjectivity problem that horizontal levels do not. Two traders can draw different lines from the same chart by choosing wicks versus closes or different anchor points. Steep lines break constantly and mean little; shallow lines with four or five touches carry real information.