Trendline
A straight line linking a series of highs or lows to map the direction price is traveling.
Draw it by connecting at least two swing points, then look for a third to confirm. In an uptrend the line runs under rising lows and acts as support. In a downtrend it caps falling highs and acts as resistance.
Trendlines are subjective. Move the anchor points a little and the angle changes, so two traders can draw different lines on the same chart. They work best as rough guides for where momentum might hold or break, not as precise trigger prices.
Related terms
Price levels where buying or selling has repeatedly stalled a move, marking floors and ceilings on a chart.
BreakoutPrice pushing decisively through a level it had been stuck below or above, often on rising volume.
Fibonacci RetracementHorizontal levels drawn from a prior swing that mark where a pullback might pause before the trend resumes.
Moving Average (MA)A line that averages price over a set period, smoothing noise to reveal the underlying trend.