Academy / Technical Analysis / Lesson 02
📈 Technical Analysis

Trend & Trendlines: Trading With The Path Of Least Resistance

Identify the trend, draw trendlines correctly, and understand why the trend is your friend — until structure says otherwise.

Lesson 02 of 4 Beginner 7 min read 🧠 3-question quiz

What A Trend Really Is

An uptrend is a series of higher highs and higher lows. A downtrend is lower highs and lower lows. Anything else is a range.

Trend is not a feeling — it is structure. If the last swing high and low moved up, you are in an uptrend, full stop.

How To Draw Trendlines

A trendline connects swing points, not every candle:

  • Connect at least two clean swing lows (in an uptrend) or swing highs (in a downtrend).
  • The third touch confirms the line.
  • Wicks vs bodies — pick one and stay consistent.
Don't force itIf you have to bend a line to make it fit, there is no trendline. Price fits the line, never the other way around.

Channels & Parallels

Draw a parallel line across the opposite swings and you get a channel. Price often oscillates between the two lines.

Channels help you buy near the lower line and sell near the upper one — with the trend, not against it.

Breaks And Retests

When a trendline breaks with momentum, it often signals a trend change or a pause. A breakout followed by a retest of the broken line is one of the cleanest entries.

But a single break is not proof. Watch structure: has a swing low actually been taken out?

Trend vs Range

Most markets spend more time ranging than trending. In a range, trendline strategies bleed — you get chopped up on both sides.

AdaptIn a range, trade the edges with tight risk or stand aside. Do not force trend trades into chop.

✅ Key Takeaways

  • Trend = structure of highs and lows.
  • Connect swing points; the third touch confirms.
  • Channels frame with-trend entries.
  • Respect the difference between trending and ranging markets.

⚠️ Common Mistakes

  • Forcing trendlines that do not fit.
  • Trading trend strategies in a range.
  • Calling a reversal on one trendline break.

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Keep The Momentum.

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