How to draw trend lines: examine price action through highs and lows

Worked example: must three higher lows form one line?

In the teaching illustration, candles 2, 6 and 10 have lows of 100, 105 and 109. A straight line from candle 2 to candle 10 is at about 104.5 at candle 6, so 105 is near the line, not an exact touch. This can help examine higher lows, but “near” should not become “three exact support tests.” Values and equally spaced candles are original illustrative data.

Start with highs and lows: trend or range?

After opening a stock candlestick chart, look at a complete price swing. Are highs and lows rising, falling, or returning to similar areas? If the direction is mixed, record the range instead of forcing an uptrend or downtrend.

Uptrend lines connect lows; downtrend lines connect highs

An uptrend line usually starts at two successive higher swing lows; a downtrend line connects lower swing highs. Two points define a line, but subsequent reactions nearby provide further evidence.

Choose a single timeframe—daily, weekly or another—then select points on that chart. A new right-edge turn may still change and is not automatically a confirmed swing endpoint.

Wicks or bodies? Keep point selection consistent

If drawing from highs/lows, check wick endpoints. If studying closes separately, record why. Do not switch arbitrarily between wicks and bodies to make a line look better.

Check for lines cutting many candle bodies, ignoring clearer intermediate highs/lows or relying on an extremely short move. Review endpoints or retain uncertainty in these cases.

What to check after a trend-line break

Distinguish an intraperiod crossing from a close, then check recovery and whether original swing highs/lows are broken. One crossing calls for review, not an automatic reversal conclusion.

Check the chart information in every market

Both markets can start with highs/lows and lines, keeping instrument, date and timeframe distinct. Chart scaling changes visual angles; apparent steepness alone is not a sound strength comparison.

Check your line-drawing reasoning with AI

Upload a clear screenshot and compare AIKTalk's locations and reasons. Which points connect? Is the right endpoint unconfirmed? What would invalidate the observation? No line can be reasonable when evidence is insufficient.