What is Trend Line (Charting Tool)?

A trend line is a line that is drawn on a chart to signify trends in price action for a specific timeframe. Trend lines are commonly used to determine the upward, sideways, or downward momentum of a price trend by connecting at least three price points on a chart to distinguish areas of support and resistance. Prices that stay above the trend line and form support are considered bullish, while prices that drop below the trend line and are unable to break above resistance are considered bearish.