Trend and Trendlines
Higher highs, lower lows.
An uptrend: each pullback stops higher than the last trendline higher low higher low higher low A trend is not a feeling, it is a structure. An uptrend is a sequence of higher highs and higher lows. A downtrend is lower highs and lower lows. When that sequence breaks, the trend is over, whatever an indicator says. Uptrend Higher highs and higher lows. Buyers keep paying more, and dips get bought earlier each time. Downtrend Lower highs and lower lows. Sellers keep accepting less. Range Neither. Price oscillates between two levels and most trend tools produce garbage. Trend break A higher low fails to hold. That is the structural signal, not a line being crossed. A trendline is a visual aid, not a law. Draw it through the lows in an uptrend, connecting at least two of them, and treat a third touch as confirmation rather than prophecy. If you find yourself redrawing it to keep price inside, the trend has already told you something.
Part of Learn NEPSE Investing, a free course on reading Nepali company accounts and charts. Section: Charts.