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Trading The Trend Lines And Price Channels Only one of two things can happen when a price approaches support or resistance: the price can break through it, or it can bounce off and reverse direction. The same is of course true for trend lines. 1. Trading on a Pullback If a chart is trending in a clear direction, and a trend line can be drawn connecting a series of relative highs or relative lows, trading opportunities exist when the price approaches the trend line. If the price bounces off the trend line and res... Using Trend Lines In Technicaly Analysis What are Trend lines? Trend lines are lines drawn on the historical price levels that depict general direction of where the marking is heading, and provide indications of support or resistance. Drawing trend lines is a highly subjective matter. The best test of whether a trend line is a valid one is usually whether it looks like a good line. In an up trend, a trend line should connect the relative low points on the chart. A line connecting the lows in a longer-term rall...