Join the lows or join the peaks:a line that shows the path price seeks.
A straight line drawn on a chart connecting two or more price points, used to identify and confirm trends.
An upward trend line connects rising lows; a downward trend line connects falling highs.
In plain words
A trend line is a straight line drawn on a chart through a series of turning points: under the rising lows of an uptrend, or over the falling highs of a downtrend. It is a drawing aid that makes the slope of the trend visible.
See it move
Price has crossed below Trend line
Why it matters
Chart readers watch whether the price stays on the trend’s side of the line. A price that crosses it is described as breaking the trend line, which some read as a sign that the trend is weakening, though a break is often followed by a return.
Worked example
An example only. The figures are round and invented for the arithmetic: they are not market prices.
An uptrend has lows at 1.1000 on day 1 and 1.1040 on day 5, and a line is drawn through them.
- 1Slope40 pips over 4 days, which is 10 pips a day.
- 2Extended 4 more days to day 91.1040 + 4 × 0.0010 = 1.1080.
- 3If the price on day 9 is 1.1060, it is 1.1080 − 1.1060 = 20 pips below the line.
The line passes through 1.1080 on day 9, so a price of 1.1060 has broken below it.
A common mistake
Two points are enough to draw a line, so any two lows produce one. A line is usually given more weight once the price has turned at it a third time, and different people draw different lines on the same chart.
Check yourself
Learn more
Educational information, not investment advice or a recommendation to trade.