From Wikipedia, the free encyclopedia Trend line can refer to: A linear regression in statistics The result of trend estimation in statistics
How do you establish a trend line historical data?
To establish a trend line historical data, typically presented in the format of a chart such as the above price chart, is required. Historically, trend lines have been drawn by hand on paper charts, but it is now more common to use charting software that enables trend lines to be drawn on computer based charts.
When does a trend break through the principal trend line?
A second way is that when price action breaks through the principal trend line of an existing trend, it is evidence that the trend may be going to fail, and a trader may consider trading in the opposite direction to the existing trend, or exiting positions in the direction of the trend. ^ Edwards, Robert D.; Magee, John (1948). “14”.
How to assess the validity and sustainability of a trend line?
When assessing the validity and sustainability of a trend line, keep in mind that short and wide charts are less likely to have steep trend lines than long and narrow charts. Sometimes there appears to be the possibility of drawing a trend line, but the exact points do not match up cleanly.
