Trendlines

Trendlines are diagonal lines drawn along swing highs or swing lows to visualize and define the direction of a trend. An upward trendline connects ascending lows; a downward trendline connects descending highs.

Key insight: A valid trendline needs at least three touches. Two points create a line; the third confirms it. Each additional touch increases the trendline's significance. When a well-established trendline breaks, it signals a meaningful shift in market structure.

Trendlines are subjective — different traders draw them differently. The best trendlines connect the most obvious swing points, are touched at least three times, and align with other technical evidence like support/resistance levels.