How Do You Interpret Stocks Trend Line?

A stocks trend line can be an upward stocks trendline or a downwards stocks trend line.

An up stocks trendline is drawn by connecting 2 lows and the stocks price lows are connected using straight line. This straight line shows that the stocks prices are heading upward because this stocks trend line slopes upwards - hence its name upward stocks trend line. Stocks traders then use this stocks trend-line as a support zone of the stocks price. New buy stock trades are opened once the stocks price touches the upwards trend line.

A down stocks trendline is drawn by connecting 2 highs and the stocks price highs are connected using a straight line. This straight line shows that the stocks prices are moving downward because this stocks trend line slopes downwards - hence its name downward stocks trend line. Stocks traders then use this stocks trend line as a resistance zone of the stocks price. New sell stock trades are opened once the stocks price touches the downwards stocks trend line.

Guide: How to Draw & Trade Upward Stocks Trendline

How Do I Interpret a Stocks Trendline? - How Do I Analyze Stocks Trend Line?

Tutorial: How to Draw and Trade Downward Stocks Trend Line

Technical Analysis of Stocks Trend-Lines - Trendline Stocks