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trendline syed

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A trendline is a straight line drawn on a chart to help visualize the general direction (trend) of a market, security, or asset over time. It is a basic yet powerful tool used in technical analysis.

🔹 Types of Trendlines:
Uptrend Line

Drawn by connecting higher lows.

Indicates a bullish market.

Acts as support.

Downtrend Line

Drawn by connecting lower highs.

Indicates a bearish market.

Acts as resistance.

Horizontal/Sideways Line

Shows a consolidation or range-bound market.

🔹 Purpose of a Trendline:
Identifies direction of the trend (up, down, sideways).

Acts as support/resistance.

Helps in spotting breakout or reversal opportunities.

🔹 Key Points:
The more times a trendline is touched without being broken, the more valid it is.

It should connect at least two significant points, preferably three for stronger reliability.

Trendlines can be applied to any time frame (intraday, daily, weekly, etc.).

Penafian

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