Trendline

Trendline

A line on the price or value chart of a security depicting the general direction in which the security is headed. This chart shows an example of an upward trendline:

Investopedia Commentary

Many people believe that prevailing trends, either up or down, will determine where a security is headed. Trendlines can be used to analyze individual securities, such as stocks, commodities or indexes, among other things.

Related Links

Introduction To Technical Analysis
Short-, Intermediate- and Long-Term Trends
Introducing The Bearish Diamond Formation

See also: Chartist, Diamond Top Formation, Reversal, Technical Analysis, Technically Strong Market, Technically Weak Market, Trend, Trend Analysis

Also spelled: Trend line

trendline

In technical analysis, a straight line or two parallel straight lines that indicate the direction in which a security has been moving, and, many chartists believe, the direction in which it will continue to move. When a security price breaks through a trendline, the beginning of a new trend is indicated.