Trendlines & Channels
Trendlines are among the oldest and most reliable tools in technical analysis. They help visualize the market’s structure — the direction, strength, and rhythm of a trend.
How to draw a trendline?
In an uptrend, connect at least two higher lows — the line acts as dynamic support.
In a downtrend, connect two lower highs — the line becomes dynamic resistance.
The more touches without a breakout → the stronger the line.
ChannelsA channel is formed when you draw a parallel line on the opposite side of the trend. It helps to spot key zones:
In uptrend → buy near the lower boundary
In downtrend → sell near the upper boundary
When price breaks the channel with volume — it can mean a new trend or acceleration of the current one.💡 Best combinations:
RSI → to confirm overbought/oversold near channel edges MACD → to detect momentum shifts before breakouts Moving Averages → to confirm trend direction Volume → to validate the strength of a breakout
Don’t force a line! Trendlines should fit the market, not the other way around. If the structure doesn’t align — skip it.
Wicks vs. Bodies — what to use?
Wicks (shadows) show the extremes of price action — useful when you want to capture the full volatility of the market.Bodies represent closing price consensus — cleaner structure, especially on higher timeframes.
