LTF
Trendlinen Trade in L & T Finanace and Holdings
What Is a Trendline?
Trendlines are easily recognizable lines that traders draw on charts to connect a series of prices together or show some data's best fit. The resulting line is then used to give the trader a good idea of the direction in which an investment's value might move.
In this explanation we draw trendline by connecting Swing Lows to show the prevailing direction of price. Trendlines are a visual representation of support and resistance in any time frame. They show direction and speed of price, and also describe patterns during periods of price contraction.
Trendlines indicate the best fit of some data using a single line or curve.
A single trendline can be applied to a chart to give a clearer picture of the trend.
Trendlines can be applied to the highs and the lows to create a channel.
The time period being analyzed and the exact points used to create a trendline vary from trader to trader.
Falgun Prajapati