NYSE S&P 500 NASDAQ Russell 2000

Trendlines

Trendlines are the trader's most important tool. Trendlines reflect support and resistance of price. Trendlines are subjective. Pick your timeframe that you are trading and draw a trendline that price is following. The more times price hits your trendline, the stronger the support and resistance along that line. Trendlines are usually drawn either up or down.

The following is an example of an uptrend in Costco Wholesale:

Uptrend

 

Next: Simple Trendline Channels

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