How do you draw a trendline?
A line that makes it easier to see price direction by connecting similar highs or lows.
Table of contents
Remember this first
First, 3 things to remember
- 1A trendline is a line connecting the price points I have selected.
- 2The line can vary depending on which points you connect.
- 3The line does not act as support or resistance for the price.
Find two points where the price was low first.
A point where the price falls and then rises is called a low, and a point where it rises and then falls is called a high. You can draw an uptrend line by connecting the rising lows.
You must also decide whether to connect the bodies of the candles or the tips of the wicks. Do not keep changing your criteria to make the results look better.
Drawing the top and bottom lines together makes it look like a channel.
A channel is a price range marked by upper and lower lines in a similar direction. It is easy to think of it as drawing the path the price has traveled.
It does not mean that the price will necessarily rebound below the channel or fall above it. Changing the vertical axis settings of the chart can also make the slope of the line look different.
If it moves outside the lines, check what happens afterward as well.
The price may briefly move outside the line and return, or it may continue to move further away. Do not conclude that a major trend has ended based on a single moment of crossing the line.
Record which candle timeframe you used and which points you connected. It is easier to identify what has changed if you review it under the same conditions.
You should not make such assumptions
“If you redraw the lines, the trend has not yet been broken.”
A trendline is a line connecting points you have chosen. The angle on the screen does not represent the actual probability of an increase.
Check what you have read.
- Did you connect the same type of points?
- Did you record the candle period and axis settings?
- Did you adjust the line after seeing the results?
Apply what you read to the actual screen
Try it on WAPE
Source and scope of verification
Reviewed · Version 2
- Getting Started with Technical AnalysisNew window
Fidelity Investments · Verify 2026-10-20
Observing trends through highs and lows · How to interpret historical prices and limitations of forecasting - TradingView layouts: a quick guideNew window
TradingView · Verify 2026-10-20
Logarithmic scales display equal percentage changes as equal distances. · General conceptual explanation; not a claim of WAPE support features
This is educational material for observation and information comprehension. Hypothetical examples do not represent actual stocks or performance and do not provide buy or sell recommendations.