Trend Lines

A trend line is a sloping line that connects a series of rising lows in an uptrend, or falling highs in a downtrend. It shows the direction and angle of the trend, and acts as a moving level of support or resistance.

Uptrend line connecting higher lows with a parallel channel line
An uptrend line under the rising lows, a parallel channel line above, and a break at the end.

How to draw a trend line

  1. Identify the trend. An uptrend makes higher highs and higher lows; a downtrend makes lower highs and lower lows.
  2. Uptrend: connect two or more swing lows, with the line below price. Downtrend: connect two or more swing highs, above price.
  3. Two points draw a line; a third touch confirms it. The more times price respects the line, the more it’s watched.
  4. Don’t force it. If you have to cut through lots of candle bodies to make the line fit, it isn’t a useful trend line.

Channels

Draw a parallel line on the other side of price (through the swing highs in an uptrend) and you have a trend channel. Price often moves between the two lines. Flags and wedges in chart patterns are built from short channels and converging trend lines.

When a trend line breaks

A close beyond the line suggests the trend is weakening, but it doesn’t always mean it’s reversing; price can move sideways and form a new, flatter trend. Many traders wait for a close rather than an intraday poke through the line, and watch whether price then retests the line from the other side.

Steep lines break sooner

Very steep trend lines are rarely sustainable and tend to break quickly. On long-term charts with big price changes, a logarithmic price scale can give a more meaningful line than a linear one.

On TradingView

Use the Trend Line tool (Alt + T), the Parallel Channel tool for channels, and toggle log scale with Alt + L. You can set alerts on a trend line to be notified when price crosses it. More in our TradingView shortcuts.

Educational explanation only. ChartWatch is independent and doesn’t give trading or investment advice. Trading carries a risk of loss.

FAQ

How do you draw a trend line?
In an uptrend, connect two or more rising swing lows with a line below price. In a downtrend, connect two or more falling swing highs above price. A third touch confirms the line.
How many touches make a valid trend line?
Two points are needed to draw it; a third touch is usually seen as confirmation.
What does a trend line break mean?
That the trend may be weakening. It doesn't guarantee a reversal; price can also move sideways.

More free TradingView tools

Support and ResistanceHow price levels act as floors and ceilings. Chart PatternsHead and shoulders, double tops, flags and wedges explained. Rising & Falling WedgeConverging trend lines and what they suggest. Keyboard ShortcutsSearchable TradingView hotkeys for Windows and Mac, printable.
TradingView — the fastest way to follow markets
Watchlist BuilderAll GuidesWatchlist GuideTradingView PlansIndicatorsShortcutsBar ReplayAlert BuilderPine ColorsWatchlist CleanerCalculatorsWorld Market HoursForex HoursStock Market HoursMarket HolidaysFed Meeting DatesCPI & NFP DatesPosition Size CalculatorCandlestick PatternsChart PatternsChart ColorsSymbol FormatAboutPrivacyTermsContact

ChartWatch is an independent tool and is not affiliated with, endorsed by, or officially connected to TradingView, Inc. “TradingView” is a trademark of its respective owner. Exchange, broker and platform names are trademarks of their respective owners.