The Trend Is Your Friend and so Are Trendlines

This Element is an excerpt from Technical Analysis Plain and Simple: Charting the Markets in Your Language (9780137042012) by Michael N. Kahn, CMT. Available in print and digital formats.

The simple, practical guide to understanding trendlines--and riding trends to earn greater investment profits.

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....