How To Draw Trendline?
Case: 1 Downward Trendline
In a 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.
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.
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.
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.
