resistance level represented by the trend line. Typical Price (High Low Close 3). Technical indicators are used by traders to gain insight into the supply and demand of securities. In addition, the stock recorded a new higher high prior to the trend line break. These bands can be adjusted to contain most of the proce action with the price often moving between the two moving bands, touching one and then the other. A steep trend line results from a sharp advance (or decline) over a brief period of time. Three White Soldiers, a bullish reversal pattern consisting of three consecutive white bodies, each with a higher close.
Triple Top Reversal A bearish reversal pattern typically associated with line and bar charts. When a trend line has been identified, it can used to identify potential areas of cryptocurrency current trading volume statistics support for subsequent correction lows. The latter is called the channel line and is drawn along the peaks in an uptrend and along the dips or valleys in a downtrend. Trend Lines are an important tool in technical analysis for both trend identification and confirmation. The lower highs are referred to as reaction or correction highs as the market attempts to correct oversold conditions. A break below the uptrend line indicates that net-demand has weakened and a change in trend could be imminent.