Trendline

A trendline is a straight line that are drawn into a share price chart between local peaks or local bottoms.

To draw a trend line, you need at least two local peaks or two local bottoms. Trendlines are drawn into the stock price charts to identify upward trends, down trends and consolidation trends. Trendlines are an important tool for the technical analyst to identify trends, to identify trend reversals and to illustrate formations.