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Technical Analysis Plain and Simple: Charting the Markets in Your Language, Second Edition by Michael N. Kahn

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Trendlines

It has been shown that support and resistance lines are horizontal levels where prices stop falling and rising, respectively. Trendlines are simply the support and resistance lines on an angle. In a trading range, the market naturally rises and falls within that price range. When it reaches the range bottom, the price is low enough to discourage the bears from being more aggressive. Likewise, price is low enough for the bulls to become more aggressive. If the bulls are more aggressive than the bears, the market will then rise off this supporting level.

In a rallying market, the natural highs and lows occur at increasingly higher levels. A rising support line can be drawn through two or more of these increasing lows to become the supporting ...

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