What Indices Trendline Break in Trading?
When trading price moves outside a indices trend line then traders say that the trend-line has been broken and this is interpreted and analyzed as a indices trend reversal.
This implies that when price movement dips below an ascending trend line, it constitutes an indices trend line break signal, which cautions that the prevailing market trend may reverse and begin moving in the contrary market direction.
Up indices trend Line Break Reversal Signal
When the price goes above an upward trendline (support), the stock trading market will then go down after this change in trend.
What Indices Trend-Line Break in Trading? - What Does Trend Line Breakout Mean
What this means is that when trading price goes above a downwards trend line then that is a indices trend line break signal which signals the market trend may reverse and begin heading in the opposite trend direction.
Down Indices Trend Line Break Reversal Signal
When the price decisively breaks below a descending trend-line (acting as resistance), the subsequent market trajectory is often an upward movement following this trend reversal.
Understanding Trend Line Breaks in Index Trading - Defining the Meaning of a Trend-Line Breakout
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