← All lessons

Trendlines

Draw lines through swing points, not through bodies. · 5 min

Charts in this lesson are generated. They are not real market data and predict nothing.

A trend is a sequence of swings. An uptrend makes higher highs and higher lows; a downtrend lower highs and lower lows. A trendline joins swing points of the same kind: lows in an uptrend, highs in a downtrend.

51.053.455.858.160.5Down trendline through the tops
Trend read from the swings: lower highs and lower lows, a downtrend.

Price is at the trendline again. Higher or lower over the next six candles?

51.053.455.858.160.5
Highs at 112, 109, 107 and lows at 104, 101, 99. What is the trend?

Simulator round · Read the trend from the swings

Generated chart. It is not real market data and predicts nothing.

91.092.794.496.197.8