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Glossary Term

Trend Line

A straight line connecting successive highs or lows to visualize a trend's direction and slope.

A trend line is drawn by connecting a series of higher lows (in an uptrend) or lower highs (in a downtrend), extending forward as a dynamic support or resistance guide. A break of a long-respected trend line is read as a potential trend change.

Trend lines are among the simplest and most subjective technical tools — draw them slightly differently and the signal changes, which invites confirmation bias. Their usefulness is as a rough visual framework for a trend’s slope and for spotting when momentum clearly breaks, not as precise price levels. Like all technical analysis, they describe structure well and predict imperfectly; the cleaner and longer-respected the line, the more attention its break deserves.

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