Using Trendlines

Trendlines can be the most basic of all technical indicators. A trendline is exactly what it sounds like: a line on a chart that shows the general direction a stock is trending. If a stock is moving up in price, its trendline slopes upward from left to right. If a stock is trending down in price, its trendline slopes downward from left to right.

In this section, you discover how to draw a trendline on a chart. Also, some hints on how to determine the direction (up or down) are given. Finally there's a quick overview of how machines (a computer) can draw trendlines for you.

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