What are Chart Trend Lines Used For?

Indices Trend lines are used to generate stock signals.

How to Use Upwards Trend Line

Upward trend line is used to generate buy stock trades in an upward trend. The upward trend line is used to show support levels for the stock price that is moving upwards as indicated by the upward trend line.

This means that the support levels of the stock prices keep moving upwards in an upwards trend and therefore traders can use these support levels that keep moving upwards to open new buy stock trades.

How to Use Upwards Trendline - What are Trend Lines Used For?

How to Use Downwards Trend Line

Downward trend line is used to generate sell stock trades in a downward trend. The downward trend line is used to show resistance levels for the stock price that is moving downwards as indicated by the downwards trendline.

This means that the resistance levels of the stock prices keep moving downwards in a downwards trend and therefore traders can use these resistance levels that keep moving downwards to open new sell stock trades.

How to Use Downward Trendline - What are Trend Lines Used For?