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 (the practice of studying price charts to predict future moves), because they help traders spot whether a stock is climbing, falling, or staying flat. A trend line matters because it can signal when a stock might be about to change direction—if the price breaks through the line, that's often seen as a meaningful shift. For example, if TechCorp stock has bounced off the $50 level three times over two months, drawing a line through those points helps you see the pattern and decide whether to hold or sell.