Trend LinesTrend lines are formed by joining two or more support or resistance pressure points. This when extended offers support and resistance levels into the future. These are the basic technical analysis tools.Trend is your friend. Dance with the friend. Tune to the trend. In an up trend two or more bottom swings are joined by a straight line, which forms support line. Similarly in a down trend two or more top swings are joined by a straight line, which forms resistance line. These lines when extended to the right side, forms support and resistance levels, in the future. A trendline is more stronger or significant, if more than two pivot points holds it. They are drawn not only on price charts, but also on indicator charts like MACD or RSI. The line joining two swing bottoms in head and shoulder formation is called 'neck line'.
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