Trend Line

A trend line is a straight line drawn on a price chart connecting two or more points where a stock's price has touched, showing the general direction the stock is moving. You'll see these all over technical analysis charts because traders use them to spot whether a stock is trending up, down, or sideways—and to predict where the price might go next. The idea is simple: if a stock keeps bouncing off an invisible line of support or resistance, that line might tell you something about future movement. For example, if TechCorp's stock price has touched $50 three times over two months without breaking below it, drawing a line through those points creates a floor that traders watch closely. When the price finally breaks through that line, it can signal a shift in momentum.