Technical Analysis
Significance of Trendlines
By Scg8866t Stockinvesting  •  November 26, 2013


A trendline is one of the most basic but established utility in charting. A break in trend caused by the penetration of the trendline results in either an actual trend reversal or a slowing in the pace of the trend. Although it is hard to know which alternatives will develop, there are three guidelines that can assist us in our evaluation.

-The length 
The trend length is a crucial factor to take into consideration. A short length trendline occurring over 1-3 weeks are only of minor importance. If the trend extends over a longer period of 1 month to 36 months, its trend violation will signify a crucial juncture point. So by analogy, long trends equals big signal, short trend equal small signal.

-The number of times the trendline has been tested
A trendline is formed by a dynamic area of support and resistance. The more times the trend is ......
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By Scg8866t Stockinvesting
Thanks for reading my blog. I am just an ordinary Singaporean with an avid interest in technical analysis, fundamental analysis and philosophy.
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