Module 4: Technical Analysis
Trendlines
5 min read
Trendlines connect higher lows in an uptrend, or lower highs in a downtrend.
Drawing them
Connect at least two clear swing points, and look for a third touch as confirmation. Avoid forcing lines through candle bodies to fit an idea.
Using them
Trendlines help define direction and possible areas for entries. A clean break may signal a slowdown or change in trend, though not always.
Key takeaways
- Uptrend: connect higher lows.
- Downtrend: connect lower highs.
- Do not force lines to fit.
Educational content only, not financial advice. Trading forex and CFDs involves significant risk of loss.