What are Chart Trendlines Used For?

Trend lines are used to generate trade signals.

How to Use Upward Trend Line

Upward trend line is used to generate buy trades in an upwards trend. The upward trend line is used to show support levels for the price that is moving upwards as indicated by the upward trend line.

This means that the support levels of the prices keep moving upwards in an upwards trend & therefore traders can use these support levels that keep moving upwards to open new buy trades.

How Do I Use Upward Trendline - What are Trend Lines Used For?

How to Use Downward Trend Line

Downward trend line is used to generate sell trades in a downward trend. The downward trend line is used to show resistance levels for the price that is moving downwards as indicated by the downwards trend-line.

This means that the resistance levels of the prices keep moving downwards in a downwards trend & therefore traders can use these resistance levels that keep moving downwards to open new sell trades.

How Do I Use Downwards Trendline - What are Trend Lines Used For?