Trendline

AAA

DEFINITION of 'Trendline'

A line that is drawn over pivot highs or under pivot lows to show the prevailing direction of price. Trendlines are a visual representation of support and resistance in any time frame.

INVESTOPEDIA EXPLAINS 'Trendline'

Trendlines are used to show direction and speed of price. Trendlines also describe patterns during periods of price contraction.

VIDEO

Loading the player...
RELATED TERMS
  1. Technically Strong Market

    A market in which both open interest and prices are increasing ...
  2. Technically Weak Market

    A market in which open interest is increasing and prices are ...
  3. Trend

    The general direction of a market or of the price of an asset. ...
  4. Reversal

    A change in the direction of a price trend. On a price chart, ...
  5. Trend Analysis

    An aspect of technical analysis that tries to predict the future ...
  6. Diamond Top Formation

    A technical analysis reversal pattern that is used to signal ...
RELATED FAQS
  1. How should orders be placed when trying to buy a bounce on a stock?

    Buying a bounce a strategy designed to purchase a stock at an advantageous price when a temporary retracement occurs in the ... Read Full Answer >>
  2. How are double exponential moving averages applied in technical analysis?

    Double exponential moving averages (DEMAS) are commonly used in technical analysis like any other moving average indicator ... Read Full Answer >>
  3. How do you know where on the oscillator you should make a purchase or sale?

    Common oscillator readings to consider making a buy or sale are below 20 or above 80, respectively. More aggressive investors ... Read Full Answer >>
  4. What are the alert zones in a Fibonacci retracement?

    The most commonly used Fibonacci retracement alert levels are at 38.2% and 61.8%. A 50% retracement level is also commonly ... Read Full Answer >>
  5. How was the Fibonacci retracement developed for use in finance?

    The use of Fibonacci retracements in stock trading was popularized by noted technical analysts W.D. Gann and R.N. Elliott. ... Read Full Answer >>
  6. How can a swing trader use a Fibonacci retracement?

    Swing traders can use the Fibonacci retracement to determine levels of support and resistance for a price on a chart, as ... Read Full Answer >>
Related Articles
  1. Active Trading Fundamentals

    Identifying Market Trends

    The success or failure of your long- and short-term investing depends on recognizing the direction of the market.
  2. Active Trading Fundamentals

    The Utility Of Trendlines

    Trendlines give an investor a good idea of the direction an investment might move in. Discover how to make them work for your portfolio.
  3. Active Trading Fundamentals

    Support And Resistance Reversals

    Discover how these influential levels can switch roles.
  4. Active Trading Fundamentals

    Trade Broken Trendlines Without Going Broke

    Learn a stop-loss strategy that will help you protect your gains when trading breaks.
  5. Chart Advisor

    Looking To The Mega Caps For Strength

    Increased volatility is making it difficult to find areas of strength in the market. Even utilities are breaking below key support levels. The mega caps could be the answer.
  6. Fundamental Analysis

    20-Year Treasury Bond ETF Trading Strategies

    iShares 20-Year Treasury Bond ETF offers a highly liquid equity alternative to direct bond exposure.
  7. Technical Indicators

    How To Interpret The Volume Zone Oscillator

    Introduced in 2009, the Volume Zone Oscillator (VZO) is gaining traction with traders and technicians.
  8. Chart Advisor

    Falling Coffee Prices Are Creating Opportunity

    Falling coffee prices is creating an opportunity for strategic traders. We'll take a look at some ideas.
  9. Stock Analysis

    Where Does Yahoo (YHOO) Go From Here?

    Yahoo operates in a competitive environment, but if it makes the right deals there's no reason why it can't thrive.
  10. Trading Strategies

    Uncovering Evidence Of Sector Rotation

    Stalk ETF performance lists over several weeks to uncover hidden institutional buying and selling strategies.

You May Also Like

Hot Definitions
  1. OsMA

    An abbreviation for Oscillator - Moving Average. OsMA is used in technical analysis to represent the variance between an ...
  2. Investopedia

    One of the best-known sources of financial information on the internet. Investopedia is a resource for investors, consumers ...
  3. Unfair Claims Practice

    The improper avoidance of a claim by an insurer or an attempt to reduce the size of the claim. By engaging in unfair claims ...
  4. Killer Bees

    An individual or firm that helps a company fend off a takeover attempt. A killer bee uses defensive strategies to keep an ...
  5. Sin Tax

    A state-sponsored tax that is added to products or services that are seen as vices, such as alcohol, tobacco and gambling. ...
  6. Grandfathered Activities

    Nonbank activities, some of which would normally not be permissible for bank holding companies and foreign banks in the United ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!