How to draw a Trend Line?

A Trend Line is a chart pattern that is used to identify and confirm the directions of the trend and to predict levels of Support and Resistance. 

During an Up Trend you would draw an ascending trend line by connecting the “lows” or the minimums of the price movement. This way we create a visual representation of a support level. 

During a Down Trend you would draw a descending trend line by connecting the “highs'' or the maximums of the price movement. This way we create a visual representation of a resistance level. 

When there is No Trend and the price is traveling sideways (during a "Flat") with little or no changes in the price movement we can apply Horizontal lines by connecting the highs (maximums) and lows (minimums). This way we create a channel with the level of resistance above the price and the level of support below the price. 

Take note: to draw a trend line you only need to have two (2) points that you connect, however the more points that you have connected (without the price moving beyond “breaking” the trend line) the stronger the level of support or resistance.