Trendline | How to draw trendline | upward | downward

Trendline | How to draw trendline | upward | downward.

Trendline – How to draw a trend line.

it’s a pretty basic and one of the fundamental concepts of technical analysis and charts.

After completion of this article then you will be able to know how to draw trendline into the chart.

So Let’s start the basics Trendline.

There are three types of Financial Instruments trends according to their direction.

Price Cycle or movement

When price action or price of any instrument starts from Accumulation till markup final to overbought or distribution phase so that momentum is called an Uptrend.

And simply I say higher highs and higher lows.

uptrendline Higher high and higer low

When price action or price of any instrument starts from Distribution till markdown final to oversold or accumulation phase so that momentum is called a Downtrend. 

And simply I say lower highs and lower lows.

downtredline lower high and lower low


So If a currency pair or any financial instrument does not go much higher or much lower, we can say that it is going sideways.

Simply No defined direction with high price momentum means in between markup and markdown.


How to Draw Uptrendline into Chart with trendline

While If an Up trendline is to be drawn.

An uptrend must have one endpoint at the lowest low point to the current bar Low in the graph.

like I am showing you in the below chart.


There are bars that bisected between line A-B, therefore, B needs to regress to a low in which no bars bisected between line A-B.

The result looks like the below chart that is higher lows thus giving us support lines.

Regrace uptrendlines

How to Draw Downtrendline into Chart

Hence If a trendline is to be drawn. 

A downtrend must have one endpoint at the highest high point to the current bar high in the graph.


Therefore there are bars that are being bisected between line C-D.

therefore, D needs to be regressed to a High in which no bars are bisected between line  C-D

The result looks like this. Lower highs thus giving us a resistance line. so-called



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About Muhammad Shahid

My name is Muhammad Shahid, MBA in Finance from IBA, University of Sindh, Professional Forex Trader & Trainer, I have taught more than 850 Students throughout the Sindh.

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