How Do I Interpret a Indices Trend Line?

A indices trend line can be an upward indices trend line or a downward indices trend line.

An up indices trend line is drawn by connecting two lows and the stock indexes price lows are connected using a straight line. This straight line shows that the stock indices prices are moving upwards because this indices trend line slopes upwards - hence its name upward indices trend line. Indices traders then use this indices trend line as the support level of the stock indexes price. New buy stock indexes trades are opened once the stock indexes price touches the upward indices trend line.

A down indices trend line is drawn by connecting two highs and the stock indexes price highs are connected using a straight line. This straight line shows that the stock indices prices are moving downwards because this indices trend line slopes downwards - hence its name downward indices trend line. Indices traders then use this indices trend line as the resistance level of the stock indexes price. New sell stock indexes trades are opened once the stock indexes price touches the downward indices trend line.

Tutorial: How to Draw and Trade Upward Indices Trendline

How Do I Interpret a Indices Trend Line? - How Do I Interpret a Indices Trend Line?

Tutorial: How to Draw and Trade Downward Indices Trend Line

Technical Analysis of Indices Trend Lines - Trendline Indices Trading