Articles · 4 November 2026 · 3 min read

How to Draw a Trendline the Right Way

Learn it once. Understand it forever.

A trendline is a straight line that shows the direction of the market. Drawn well, it keeps you on the right side of the trend. Drawn badly, it shows you whatever you want to see.

Which points to connect

In an uptrend, price makes higher lows: connect those lows with a line underneath price. In a downtrend, price makes lower highs: connect those highs with a line above price.

Two points are not a trendline

Any two points can be joined by a line. A trendline becomes meaningful when price reacts to it a third time. That third touch shows other traders are watching the same line.

Keep the angle realistic

A very steep line breaks quickly and says little. A line that is too flat is barely a trend. The most useful trendlines follow the natural rhythm of the moves and their pullbacks.

What a break tells you

When price closes clearly through a trendline, the trend is losing strength. It does not automatically mean a reversal: wait to see whether price makes a new lower high or higher low in the other direction.

Educational content only — not financial advice. A trendline is a guide to the trend, not a signal by itself. Combine it with levels and candle behaviour.

Watch the full lesson on our YouTube channel.