Skip to main content
Stocks

Trend Lines

A trend line is a valuable tool in finance that helps us understand a stock's price movement. It is created by connecting a stock's successive lows to determine support and successive highs to determine resistance. The more times a stock's price touches a trend line and holds, the more reliable it is as an indicator. We can use trend lines to identify long-term and short-term trends and to make informed decisions about when to enter or exit trades. When following a trend, it is important to monitor the stock's behavior, and a break in the trend for more than one day indicates a change in its character. In such cases, the trend line is no longer valid.

Related terms

Portfolio

Understand the meaning and definition of Portfolio in the context of stock market, trading, and investments.

MORE
Moving Negative Divergence

Understand the meaning and definition of Moving Negative Divergence in the context of stock market, trading, and investments.

MORE
Fallen Angel

Understand the meaning and definition of Fallen Angel in the context of stock market, trading, and investments.

MORE
Income Statement

Understand the meaning and definition of Income Statement in the context of stock market, trading, and investments.

MORE

Open Free Demat Account!

Join our 3.8 Cr+ happy customers

+91
Explore other categories
Enjoy Zero Brokerage on Equity Delivery
10 Cr+DOWNLOADS

Enjoy Zero Brokerage On Stock Investments

Get the link to download the App

Scan this QR code to download the app
Get it on Google PlayDownload on the App Store

Open Free Demat Account!

Join our 3.8 Cr+ happy customers
+91