Alex Trading Academy
AcademyBeginnerLesson 5

Lesson 5 of 15

Trendlines

Beginner
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A trendline is a diagonal line drawn across multiple swing highs or swing lows to visualise the direction and strength of a trend.

**Uptrend** — draw a line connecting higher lows. **Downtrend** — draw a line connecting lower highs.

Trendlines act as dynamic support and resistance. A break of a trendline can signal a trend reversal or a major shift in momentum.

Knowledge Check

7 questions

1.In an uptrend, a trendline connects:

2.In a downtrend, a trendline connects:

3.Trendlines act as dynamic:

4.What can a break of a trendline signal?

5.What is generally needed to increase confidence that a trendline is valid?

6.A trendline is best described as what type of line?

7.What does a trendline help traders visualize?