How Do I Analyze Stocks Trend Line?

A stock trend line can be an upward stock trend-line or a downward stock trend line.

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

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

Guide:How to Draw & Trade Upward Stock Trendline

How Do You Analyze a Stock Trend-Line? - How Do You Interpret Stock Trend Line?

Course: How to Draw & Trade Downwards Stock Trend Line

Technical Analysis of Stock Trend Lines - Trendline Stock Trading