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Trading and Investment Terminology


A trendline is a line drawn over pivot highs or under pivot lows to show the prevailing direction of price. 

Trendlines are a visual representation of support and resistance in any time frame. 

They show direction and speed of price, and also describe patterns during periods of price contraction.


  • Trendlines indicate the best fit of some data using a single line or curve.
  • A single trendline can be applied to a chart to give a clearer picture of the trend.

Trendlines are relatively easy to use. A trader simply has to chart the price data normally, using open, close, high, and low.