Basics of Trend Lines

• Trendline that has been tested or touched multiple times is more significant than one that has been tested fewer times. 
• Trendlines gain validity each time they are successfully tested.
• A trendline with a lower slope will be more valid than one with a steeper angle. 
• A trendline that has lasted many years is more valid than one that has lasted a few weeks or months.
• Trend lines should be drawn through the lows of an up-trend — and through the highs of a down-trend.
• Draw trend lines through closing prices on long-term charts.
• Use either normal or log scale charts but be aware of their respective weaknesses.
• Trend lines must be respected by at least three lows (or highs in a down-trend) — if repeated  twice, the trend line is not yet confirmed;
• Trend lines should not intersect price at any point on the chart if extended.

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