Trendlines are perhaps the esiest technical tool to understand, but considerable experimentatin and practise are requied before the art of imterpreting them can be successfully mastered.
Trendline violations signal either a temporary interruption or a reversal in the prevailing trend. It is necessary to refer to other pieces of technical evidence to determine which is being signalted .
The significance of trendlines is a function of their length, the number of times they have been touched or approached, and the steepness of the angle of ascent or descent.
A good trendline reflects the underlying trend and represents an imprortant support and resistance zone. Extended trendlines are an important concept and should not be overlloked.Exhaustionbreaks often possess good predicitive power.
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