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Trend lines are a way for you to predict price because technical analysis is based on future predictions.

Trend Lines

– Trend lines have to hit the price points two or more times
– You can have a positive or negative trend
– They help you look at the future
– They can change angles at higher or lower slopes depending on how strong the trend is
– Trend lines can be validated with a third or fourth point
– Pay attention to trend line spacing or the distance between each point
– Tighter points have more validity toward the trend line
– Pay attention to angles: the steeper the angle of the trend line, the less validity its support and resistance has (because the price points are being climbed rapidly)
– Both upward and downward sloping trend lines can help you to predict future prices within technical analysis

#technicalanalysis #trendlines #stockslines #stockmarket #markettrends

Posted at: https://tradersfly.com/blog/understanding-trend-lines-within-stocks/

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