Investor Glossary-trendlineInvestor Glossary-trendlineInvestor Glossary-trendlineInvestor Glossary-trendlineInsightful stock market charts - Click here
investor
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

Trendline

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


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use