A trendline is a straight line that connects two or more price points on a chart, providing a visual representation of the direction and speed of price movements over time. Trendlines are typically used in technical analysis to identify potential areas of support and resistance within a trend. An upward trendline is drawn by connecting a series of higher lows, suggesting that demand is increasing, whereas a downward trendline connects lower highs, indicating a decline in demand. Traders often use these lines to inform their trading decisions, as they can help to determine potential entry and exit points based on historical price action.
