When price starts moving away and you have to cut through price, you will have to “fan” the trend line The red line would be the first line you would draw.This chart is using an uptrend line on a Forex chart and shows two examples of a trend line. The downward trendline provides resistance. The opposite is true when you connect a minimum of 2 lower swing highs, what you have would be a downward trendline.The upward trendline generally trends to provide support. If you draw a trendline connecting a minimum of 2 higher swing lows, you have an upward trend line.When price is moving up or down, it forms those higher swing highs and higher swing lows (uptrend) and lower swing highs and lowers swing lows (downtrend).When we are talking about an uptrend line, we are referring to a trend line line that uses the higher swing lows and that defines the trend.

We all know that an uptrend has price making higher highs and higher lows. Trend lines are one of the most basic technical analysis tools around but powerful in their usage.įirst, let’s look at trend lines in terms of defining a trend.

It’s not even necessary to actually draw them when you have enough experience as you can visualize them on your charts. Many price action traders will use trend lines as their way of determining everything from trend to reversal points. Trading with trend lines as your swing trading strategy uses the rhythm of the market and price action as the core of your trading strategy.

Trend line scidavis