Trendline Drawing Rules
Technical Analysis

How To Draw Trendline?

Case: 1 Downward Trendline

In an Downtrend In an Downtrend, the price makes lower lows and lower highs. , trend lines should be drawn above the price and this downward trendline always act as resistance.
Trendline Higher Highs & Parallel line
Downward Trendline

Case: 2 Upward Trendline

In an Uptrend In an Uptrend, the price makes higher highs and higher lows. , trend lines should be drawn below the price and this upward trendline always act as support.
Trendline Higher Highs & Parallel line
Upward Trendline

Case: 3 Trendline using Higher Highs & Parallel line

You can draw a trendline by connecting the Higher Highs in uptrend and taking the parallel off the subsequent Low, as shown in the figure. The parallel line shows support.

Trendline Higher Highs & Parallel line
Higher Highs & Parallel line

Case: 4 Trendline using Lower Lows & Parallel line

You can draw a trendline by connecting the Lower Lows in downtrend and taking the parallel off the subsequent High, as shown in the figure. The parallel line shows resistance.

Trendline Lower Lows & Parallel line
Lower Lows & Parallel line
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