We can draw trend lines in any trend, whether it is uptrend, downtrend or sideways market.
Because of that, we have different types of trend lines but for all of them worth the same rules.
An upsloping trend line is used for an uptrend.
You are using them to mark support or resistance area.
By marking and matching swing highs, you will get the area of resistance.
On the other side, by marking and matching swing lows, you will get the area of support.
A downsloping trend line is used to mark and match highs with highs and lows with lows in a downtrend.
On this example, by marking and matching swing highs, we get a down sloping trend line that is used to represent the area of resistance.
One of the most important trend lines is horizontal because it marks significant horizontal support and resistance levels.
It plays a crucial role in the majority of our strategies so later on this will be most used trendline in our course.
This example shows the best that it is not a single price point but rather an area of interest.
Milos is an independent trader, with a background in journalism and publishing. Nomadic by nature, he’s lived in four different countries this decade. He’s fascinated by Blockchain technologies’ potential to reshape all aspects of our lives. Milos got into Bitcoin while completing his degree and hasn’t looked back since, writing about anything crypto-related. He is the co-founder of the Cryptoaims and he has a strong passion to educate people about this revolutionary technology.