⁣Trendlines are one of the simplest yet most effective tools for identifying the direction of the market. A trendline is drawn on the chart to connect significant price points (lows in an uptrend and highs in a downtrend) to show the prevailing direction of price movement. There are three main types of trendlines: Uptrend Line (Support): An upward sloping trendline that connects at least two or more significant lows. It acts as a support level where the price tends to bounce higher. The more touches it has, the stronger the trendline. Downtrend Line (Resistance): A downward sloping trendline that connects at least two or more significant highs. It acts as a resistance level where the price is likely to reverse downward. Horizontal Trendline: This can also be used to mark key support or resistance levels in a range-bound market, where the price moves within a horizontal range. Key Point: Trendlines help traders identify the market's overall direction (uptrend, downtrend, or sideways). They are also used to spot breakouts (when price moves above or below the trendline) or trend reversals. Example: In an uptrend, draw a trendline connecting two or more lows. As long as the price stays above this line, the uptrend is intact. If the price breaks below the trendline, it may signal the start of a downtrend.