Definition of Trend line

Trend line is a line used to predict the future price movement for a security. Drawing a line under the successive lows or successive highs creates a trend line.

Applying "Trend line" to Securities Exams:

Technical analysts will look at the past price performance of a security to predict its future price movement. A series of higher highs and higher lows indicate an upward trend. A series of lower highs and lower lows indicates a downward trend.

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