Section 3 · Chart Reading
Trend Lines
Connect the dots — and see where price is really heading.
A trend line is your best summary of where price is headed.
Uptrend = higher highs + higher lows. Connect the lows with a line. Trade with the trend, not against it. The trend is your friend until it bends.
3 things to know
📐
An uptrend requires at least 2 higher lows to draw a valid trend line.
3️⃣
A third touch of the trend line confirms it — three-point trends are reliable.
💥
High-volume breaks of trend lines are the most significant signals.
Dive Deeper
Trend line rules
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Key vocabulary — tap each card
Practice
Uptrend with higher lows
HL = Higher Low. Connect them for the uptrend line.
Did you know?
Do NOT draw trend lines through candle bodies — draw through wick tips. A trend line that cuts through bodies is inaccurate. Always connect the lowest wick points on an uptrend.