Monthly Trendline - Simple Trading Works

01 — What Is a Trendline?

A trendline is a straight line drawn on a price chart connecting a series of price points — typically swing lows in a rising market. On the monthly timeframe, each bar represents one full calendar month of price data. A trendline drawn here reflects macro-level price behavior observed over years. It is a visual reference tool used to identify the general slope of price movement across an extended historical period.

02 — Market Structure

Market structure refers to the organized pattern of price movements — the sequence of peaks (highs) and troughs (lows) that price prints over time. Structure is observed, not forecasted. It represents what has already occurred on the chart.
Higher Highs & Higher Lows (HH / HL)

In a bullish market structure, price tends to form a pattern of Higher Highs (HH) and Higher Lows (HL). A Higher High occurs when price reaches a peak above the previous peak. A Higher Low occurs when price pulls back to a trough above the previous trough. This sequence is the textbook definition of a market that has historically been making upward progress in its structure.

Trendline & Bullish Structure — The Relationship ?

When a trendline connects the Higher Lows of a bullish structure, it visually represents the ascending floor of price — the rising series of lows that have historically defined the structure. The trendline and the HH/HL sequence describe the same observed phenomenon from two different perspectives: one geometric, one labeled. Together they form a complete picture of how price has historically organized itself on this chart.

⚠️ Disclaimer: This post is strictly educational. All analysis is based solely on historical price data on the monthly timeframe. No directional bias, price targets, or trade recommendations are expressed or implied. Past market structure does not guarantee future behavior. This does not constitute financial advice.