What is the Trendline Theory? A trendline helps technical analysts determine the current direction in market prices. ... If the analyst draws a line between all three price points, they have an upward trend. The trendline drawn has a positive slope and is therefore telling the analyst to buy in the direction of the trend.
Lets us understand how Trendline Theory works with the chart given below-
So as per the above theory- The levels mentioned in the chart (powergrid) is considered to be the right entry point to take long position in the stock, also i have tried to identify the reversal point in macd and Rsi indicator in further support of the trade setup.
Do like and comment if you have any suggestion ...thanks