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Trend line (Technical Analysis)

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Trendline (Technical Analysis)

A trend line is a bounding line for the price movement of a security. A support trend line is formed when an (in short the line which shows trend or direction of movement).

securities price decreases and then rebounds at a pivot point that aligns with at least two previous support pivot

points. Similarly, a resistance trend line is formed when a securities price increases and then rebounds at a pivot

point that aligns with at least two previous resistance pivot points. The following chart provides an example of

support and resistance trend lines

 

Breakout (technical analysis):

A breakout is when prices pass through and stay through an area of support or resistance. On the technical analysis

chart, a break out occurs when the price of a stock or commodity exits an area pattern.

 

 


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