Trend Lines and Channels

A trend line connects a series of swing highs (in a downtrend) or swing lows (in an uptrend) to visualize the general direction of price. A valid trend line needs at least two touch points to draw and a third to confirm it's holding.

A channel is formed by drawing a second, parallel line on the opposite side of price — giving you both a trend direction and a rough "ceiling and floor" the price has been moving between.

Trend lines aren't predictive on their own; they describe what has already happened. Their main practical use is spotting when price behavior changes — a clean break of a well-respected trend line is often treated as an early signal that the prior trend may be weakening.