ASCENDING TREND LINE
DESCENDING TRENDLINE
Trend line is the most important tool in technical analysis. Constructing a trend line is easy, connect high prices or low prices of a stock or index on it chart, We will get a trendline.
We can classify trendlines into two types The ascending trendline and the descending trendline. The ascending trendline or the uptrend line can be formed by connecting the low prices of a stock. The uptrend line can be extended into the future and is considered as good support level for the stock.
We need only two points to construct a trendline . But the effectiveness of the trendline increases with more touches on the trendline. If the touches on the trendline increases more number of traders will believe in it.
Trendlines are mainly used to predict support and resistance level of a stock. And for drawing patterns like channels, triangles etc.
Lets look at some examples from recent past
CLICK HERE TO SEE THE INFOSYS CHART A GOOD EXAMPLE FOR ASCENDING TRENDLINE
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