Technical Analysis Trendline

One of the old axioms of technical analysis is that 'the trend is your friend'

Trendlines are straight lines drawn by connecting tops (down trend) or bottoms (up trend). To draw a trend line we require at least two tops or two bottoms Trend has three directions Up, Down & Sideways.

Trend can also be classified as Long Term, Intermediate & Short Term trend.

Practical Use:

1> Stay Long (buy) till up trend is in force.

2> Stay Short till down trend is in force.

Caution: In cash market if you short sell you have to cover (buy) it till the end of day, else it goes for Mutton shop called Auction. Best option for short selling is Futures & Options Market, where you can go short & stay short for days, which is not possible in Cash Market.





Technical Analysis Basics

Technical Analysis Charts Type

Technical Analysis Trend Reversal

Technical Analysis Support Resistance

Technical Analysis Moving Average