Trendline

A trendline is a straight line drawn on a price chart connecting a series of price highs or lows to visually represent the direction and slope of a trend. An upward trendline connects successive higher lows, confirming a bullish trend, while a downward trendline connects successive lower highs, indicating a bearish trend. The more times a price touches a trendline without breaking it, the more significant that line becomes. A decisive break of a trendline—especially on high volume—is one of the most watched signals by technical traders, as it can indicate a potential trend reversal or a significant acceleration in the existing direction.