Trendlines & Channels
Diagonal support/resistance — connect the swing points and the trend's rhythm becomes visible and tradable.
Price StructureIntermediate 4 min read· Lesson 4 of 13 in Technical Analysis
Explanation
An uptrend line connects rising swing LOWS (support in motion); a downtrend line connects falling swing HIGHS. A CHANNEL adds a parallel line at the opposite extremes — price often oscillates between the pair like a corridor.
Interpretation & use
A valid line needs 2 touches minimum, gains force with 3+. Channel bottoms offer trend-direction entries; channel tops mark profit-taking zones. A decisive close through a many-touch trendline is an early warning the trend's rhythm broke — often before the horizontal structure gives way.
Common mistakes
Force-fitting lines through candle bodies and wick noise until they 'prove' your bias. If you must squint, the line isn't there. Redraw as new swings form; lines are living objects.