Trade Your Friend, The Trend
TradeWithPros believes the trend is our friend. We advocate trend following trading. The trend is the direction the security is presently headed. Up, down or sideways movement represents the trend.
The trendline is simply another form of support and resistance. As price approaches a trend, it will find support or resistance along the trend.
To establish the present trend, draw a trendline on your chart. Check multiple time frames to establish short, intermediate and long term trends.
The following daily chart shows an uptrend in progress on IBM. Remember that trendlines can be uses on any time frame, from minutes to months.
As with support and resistance, the more times price hits a particular trendline, the stronger those points will be.
Points that appear at the same price on trendlines across multiple time frames are usually strong areas of support and resistance.