O'Reilly logo

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

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

7. The Trend Is Your Friend and So Are Trendlines

The old adage says, “The trend is your friend.” Why? It is because trends tend to perpetuate unless something causes them to do otherwise. If you can identify a trend in its early stages, you can ride that trend for significant profits. Trendlines mark the trend on the chart so it can be followed easily once it is identified.

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 ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required