Adding a trendline to an Excel candlestick chart

Another function you can enjoy when using Microsoft Excel for charting is the trendline function. It's found in the same area as moving averages (see the preceding section), so if you can add a moving average, you can easily add a trendline. A trendline is a line that indicates the direction of a trend either higher or lower. The line is usually drawn based on the lows (in the case of an uptrend) or the highs (based on a downtrend) of the price action in the trend. For more information on trendlines and how to interpret them with candlestick charts, turn to Chapter 11.

But for now, get going on adding a trendline to your chart:

1. With your chart sheet open in Excel, select Chart on the menu bar. A menu box will open.

2. Select Add Trendline to open the Add Trendline box.

3. Highlight the top left box, which is Linear.

This choice is the default, so it may already be highlighted.

If you've continued using the data from the previous examples in this chapter, your Excel chart with an added trendline should resemble Figure 4-8.

Figure 4-8:

A basic Excel candlestick chart with a trendline added.

Figure 4-8:

A basic Excel candlestick chart with a trendline added.

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