Trendlines are lines drawn on a price chart to identify the direction of an asset’s trend over time.
They are one of the most basic tools in technical analysis and are used to connect a series of highs or lows, helping traders visualize and analyze market trends.
Trendlines can be used to identify potential entry and exit points, as well as to set stop-loss levels. A break above a downtrend line or below an uptrend line is often considered a significant event, signaling a potential trend reversal.
Traders often use trendlines in conjunction with other technical indicators and chart patterns to make more informed trading decisions.
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