Investor Glossary-trendlineInvestor Glossary-trendlineInvestor Glossary-trendlineInvestor Glossary-trendlineInsightful stock market charts - Click here
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z


The HTML to link to this page

A trendline is a straight line connecting multiple points on a chart. A trendline is used in technical analysis to determine the direction and strength of a trend. An up trendline has a positive slope and connects at least two low points on a chart. A down trendline has a negative slope and connects at least two high points on a chart. The magnitude of the slope of a trendline, or steepness, indicates the strength of the trend. When the time frame covered by a trendline becomes large, the chart may be replotted using a logarithmic scale for the price axis.

A trendline can be extended beyond the available data to indicate potential areas of support (for a trendline that connects price lows) and resistance (for a trendline that connects price highs). If the price moves below support or above resistance, it can indicate a potential change in trend.

Rate this trendline definition...

Learn about investing with the Investor Glossary Term of the Day

Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.

Popular Terms: covered put, risk management, average price per share, deferred tax, dividends payable, retained earnings, 144a, 1031 exchange, diluted share, reverse mortgage, class C shares, inflation, Zero Cost Collar, FICO score, stock split, ex-dividend, quality assurance, in escrow, limit order, phantom income, annual return, 1035 exchange, APR, irrevocable trust, option premium, deferred revenue, VIX, Key Rate Duration, 401a, real GDP, EBITDA, LIBOR, margin rate, current ratio, stock market close, cancelled check, ex-dividend date, balance sheet, liquidity ratio, required rate of return, FTSE, labor relations, wholly-owned subsidiary, implied volatility, per diem, command economy, debt service coverage, open position, minority interest

Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2015 Investor Glossary - All rights reserved - Terms of Use