Support Trendline

A support trendline is the demand version of a trendline. It is drawn under the higher lows of an uptrend. Price has turned up from the line more than once. Traders treat a return to the line as a place where buyers previously appeared.

An upward slope connecting at least two, preferably three, reaction lows, with price staying mostly above it. A horizontal line is horizontal support, not this term.

A hold of the line, with a rejection wick or a higher low, fits the uptrend. The line is the risk. A close back above it after a brief pierce can still be a hold.

A close beneath the line says that particular slope of demand failed. Look next at whether the last higher low also failed. The trendline break can lead the structure break, or it can be noise.

Buying a trendline that has never been touched twice, or one drawn through a single steep low that will not be revisited.

Steep support lines break often because the slope is unsustainable. A shallow line with many touches deserves more respect than a steep line with two.