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148:. It is formed when a diagonal line can be drawn between a minimum of three or more price pivot points. A line can be drawn between any two points, but it does not qualify as a trend line until tested. Hence the need for the third point, the test. Trend lines are commonly used to decide entry and exit timing when trading securities. They can also be referred to as a
205:. Trend lines can be used to identify positive and negative trending charts, whereby a positive trending chart forms an upsloping line when the support and the resistance pivots points are aligned, and a negative trending chart forms a downsloping line when the support and resistance pivot points are aligned.
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When establishing trend lines it is important to choose a chart based on a price interval period that aligns with your trading strategy. Short term traders tend to use charts based on interval periods, such as 1 minute (i.e. the price of the security is plotted on the chart every 1 minute), with
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Trend lines are used in many ways by traders. If a stock price is moving between support and resistance trend lines, then a basic investment strategy commonly used by traders, is to buy a stock at support and sell at resistance, then short at resistance and cover the short at support. The logic
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approach to judging entry and exit investment timing. To establish a trend line historical data, typically presented in the format of a chart such as the above price chart, is required. Historically, trend lines have been drawn by hand on paper charts, but it is now more common to use charting
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behind this, is that when the price returns to an existing principal trend line it may be an opportunity to open new positions in the direction of the trend, in the belief that the trend line will hold and the trend will continue further.
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software that enables trend lines to be drawn on computer based charts. There are some charting software that will automatically generate trend lines, however most traders prefer to draw their own trend lines.
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is formed when a securities price increases and then rebounds at a pivot point that aligns with at least two previous resistance pivot points. Stock often begin or end trending because of a
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since the earliest data point until April 2008. While the Oracle example above uses a linear scale of price changes, long term data is more often viewed as
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is formed when a securities price decreases and then rebounds at a pivot point that aligns with at least two previous support pivot points. Similarly a
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longer term traders using price charts based on hourly, daily, weekly and monthly interval periods.
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However, time periods can also be viewed in terms of years. For example, below is a chart of the
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Chart from 1950 to about 1990, showing how linear scale obscures details by compressing the data.
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Trend lines are typically used with price charts, however they can also be used with a range of
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242:. Springfield, MA, USA: Stock Trend Service. p. 505.
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56:. Unsourced material may be challenged and removed.
167:such as a product launch or change in management.
144:is a bounding line for the price movement of a
238:Edwards, Robert D.; Magee, John (1948). "14".
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170:Trend lines are a simple and widely used
116:Learn how and when to remove this message
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619:Moving average convergence/divergence
7:
65:"Trend line" technical analysis
54:adding citations to reliable sources
240:Technical Analysis of Stock Trends
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30:
41:needs additional citations for
724:Accumulation/distribution line
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800:CBOE Market Volatility Index
441:Triple top and triple bottom
406:Double top and double bottom
940:
608:Know sure thing oscillator
602:Detrended price oscillator
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16:Tool in technical analysis
590:Average directional index
683:Relative strength index
596:Commodity channel index
320:Elliott wave principle
219:Support and resistance
133:
741:Negative volume index
689:Stochastic oscillator
566:Fibonacci retracement
161:resistance trend line
131:
893:Ralph Nelson Elliott
837:McClellan oscillator
825:Advanceâdecline line
506:Three white soldiers
50:improve this article
19:For other uses, see
700:Ultimate oscillator
694:True strength index
361:Open-high-low-close
806:Standard deviation
778:Average true range
759:Volumeâprice trend
614:Ichimoku KinkÅ HyÅ
421:Head and shoulders
291:Technical analysis
195:technical analysis
172:technical analysis
157:support trend line
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747:On-balance volume
642:Smart money index
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501:Three black crows
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790:Donchian channel
729:Ease of movement
677:Money flow index
658:Vortex indicator
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520:Point and figure
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61:Find sources:
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39:This article
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903:Mark Hulbert
647:
496:Morning star
325:Market trend
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48:Please help
43:verification
40:
898:John Murphy
888:Charles Dow
858:Ulcer index
735:Force index
705:Williams %R
571:Pivot point
456:Candlestick
341:Candlestick
188:logarithmic
184:S&P 500
831:Arms index
770:Volatility
648:Trend line
625:Mass index
558:resistance
547:Indicators
371:Line break
315:Dow theory
225:References
150:Dutch line
142:trend line
76:newspapers
21:Trend line
883:Ned Davis
533:Bear trap
528:Bull trap
106:July 2019
918:Category
871:Analysts
669:Momentum
592:(A.D.X.)
436:Triangle
380:Patterns
305:Breakout
298:Concepts
213:See also
146:security
817:Breadth
483:Complex
138:finance
90:scholar
833:(TRIN)
716:Volume
621:(MACD)
465:Simple
334:Charts
246:
92:
85:
78:
71:
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846:Other
827:(ADL)
802:(VIX)
780:(ATR)
761:(VPT)
755:(PCR)
749:(OBV)
743:(NVI)
731:(EMV)
696:(TSI)
685:(RSI)
679:(MFI)
644:(SMI)
638:(SAR)
610:(KST)
604:(DPO)
598:(CCI)
582:Trend
388:Chart
346:Renko
97:JSTOR
83:books
786:(BB)
737:(FI)
707:(%R)
660:(VI)
653:Trix
632:(MA)
573:(PP)
473:Doji
356:Line
351:Kagi
244:ISBN
201:and
199:MACD
140:, a
69:news
808:(Ï)
416:Gap
203:RSI
136:In
52:by
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155:A
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