Trendline and Channel Live examples

Trendlines are a relatively simple tool that can be used to gauge the overall direction of a given asset, but, more importantly, they can also be used by traders to help predict areas of support and resistance This means that trendlines are used to identify the levels on a chart beyond which the price of an asset will have a difficult time moving.

In the context of technical analysis, a channel is when the price of an asset is moving between two parallel trendlines. The upper trendline connects the swing highs in price, while the lower trendline connects the swing lows.

Trendlines are a great tool, showcasing short-term trends within the overall trend. Pay attention to price action and always consider it when using trendlines. If the price makes lower lows and lower highs, it's still a downtrend even if the price moves above a descending trendline.

If the price makes higher highs and higher lows, the price still has an uptrend even if it moves below the trendline.

Today's Example :





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