How to Identify Trading Trendlines
A trend can be up, down, or lateral and is represented by drawing a straight line above the daily highs in a downward trend and a straight line below the daily lows in an upward trend. See Figure below.
[caption id="attachment_13087" align="alignleft" width="370"] Bar Chart with Trendlines[/caption]
A common trading technique involves the intersection of the trendline with the most recent prices.