What is a trendline in trading?
In one line: A trendline is a straight line drawn through 2 or more turning points on a chart — rising lows in an uptrend, falling highs in a downtrend.
A simple example
Price is in an uptrend. The last 2 places it turned back up were:
- $20.00, at candle 1
- $22.00, at candle 11
Join those 2 lows with a straight line. It rises $2 over 10 candles, or $0.20 per candle. If the line keeps the same slope, it would sit near $24.00 at candle 21.
If price dips back to about $24 around then and turns up again, the line gets a third touch. Each touch makes it easier for other traders to see too.
In a downtrend, you do the same with the falling highs, the last places price turned back down.
Why it matters
A trendline turns a Trend into something you can see at a glance. It shows the slope: how fast price is climbing or falling.
It also acts like a slanted Support or Resistance line. When price comes back to it, many traders watch for a reaction. When a candle body closes clearly through it, the trend may be slowing or changing.
Our step-by-step guide is how to draw trendlines.
A common mistake
Moving the line to fit the chart. If you redraw it every time price slips through, the line will always look right. That makes it useless.
Pick clear turning points, draw the line, and leave it. Be consistent too: connect the tails (wicks) every time, or the bodies every time. Mixing the two changes the slope.
Only a candle body closing past the line counts as a break. A Wick poking through and snapping back is often a Fakeout.
Questions
How many points make a valid trendline?
2 points draw the line. A third touch that holds makes it more meaningful, because it shows price is respecting it.
Should trendlines connect wicks or bodies?
Either works, as long as you pick one way and stick with it. Many traders use the wicks for the lows and highs.
What does a trendline break mean?
The trend's pace has changed. It doesn't always mean it has turned. Check whether the pattern of higher highs and higher lows has also broken.
Want the next step? We'll walk you through it.
Four free lessons by email, one every few days — each with a 10-minute exercise on a real chart.
Send Me the Free Lessons 4 short emails · No spam · Unsubscribe anytimeOr see the whole method, step by step:
See What’s Inside the Course Try everything free first. Decide when you're ready. · Open the free chart tool (works in the TradingView phone app)One chart idea a day, in plain English. Follow along: