Trendline
NeutralReliability: MediumAlso called · trend line, trend channel line
A line joining lows to lows or highs to highs. You read the slope of the trend.
How to spot it
- Two points minimum; the third touch confirms it's valid
Why this shape forms
Lows or highs lining up at a steady slope means participants are working off the same reference.
Where it actually means something
Three touches minimum before you call it a line. Any two points can be connected, so two proves nothing.
What else to check
More touches and a gentler slope mean it lasts longer. Lines much steeper than 45 degrees break soon.
This means you're wrong
If price closes through and can't recover, treat the trend as broken.
The mistake beginners make
Redrawing the line to fit your scenario. That's the moment analysis becomes rationalisation.
Easy to confuse with
Drawing on wicks versus closes gives you different lines. Either is defensible; pick one and stay consistent.
Real examples from the community
Patterns are probabilistic tendencies, not guarantees. This is not investment advice.