a straight line connecting successive swing lows in a rising market is called a

A trendline — drawn along successive swing lows in an uptrend, and along successive swing highs in a downtrend. Add a parallel line at the opposite extreme and you have a channel, with price oscillating between the two rails. It is the easiest tool on a chart to draw and by some distance the easiest to abuse, because with enough attempts a line can be made to touch almost anything.

how many touches does a trendline need to be valid

Three. Two points define any straight line — that is geometry, not analysis — so the line only becomes evidence when price respects it a third time without you having moved it. If price has cut through repeatedly and you keep redrawing the line flatter until it works, you are fitting a story to the data rather than reading it.

should a trendline be drawn on wicks or closing prices

Either is defensible, but you must pick one and hold it for the whole chart — switching between wicks and closes mid-chart to make a line fit is the commonest form of self-deception with this tool. Wick-to-wick lines capture the true extremes; close-to-close lines ignore intraday spikes and tend to be steadier on volatile smallcaps. Decide before you draw, not after you have seen which version flatters your view.

when should I use a log scale for a trendline

On any trendline spanning more than about two years. On a linear chart equal percentage moves take up more vertical space at higher prices, so a long line curves away from price for purely arithmetic reasons and produces breaks that mean nothing. A log scale makes equal percentage moves equal in height, which is the scale a multi-year trend has to be judged on.

throwback meaning in a price channel

A throwback is price breaking down through the lower rail of a channel and then returning to touch that rail from underneath — old support now acting as resistance. It is the same role-reversal behaviour that levels show, applied to a sloping line, and it gives a defined level to work against with a tight invalidation just above it. The mirror case after an upside break sees price return to the upper rail and find support there.

Trendlines and channels · Market Vidyalaya

A trendline is a straight line connecting successive swing lows in an uptrend or swing highs in a downtrend. It is the easiest tool to draw and by some distance the easiest to abuse, because with enough attempts a line can be made to touch almost anything.

Drawing one honestly

1
Connect at least two swing points, then wait for a third
Two points define any line — that is geometry, not analysis. The line only becomes evidence when price respects it a third time without you having moved it.
2
Use the extremes, and be consistent
Either connect wicks throughout or connect closing prices throughout. Switching between them mid-chart to make the line fit is the most common form of self-deception here.
3
Do not force it through
If price has cut through your line repeatedly, the line is wrong. Redrawing it flatter until it works is fitting a story to data.
4
Use a log scale on long histories
On a linear chart a multi-year trendline curves away from price simply because equal percentage moves take up more vertical space at higher prices. Trendlines over two years should always be drawn on a log scale.

20-day average

Connect the successive pullback lows. Notice that the useful line is the one touching three or more of them without cutting through the body of any candle — and that it sits well below the steepest possible line you could draw.

Channels

Draw a parallel line at the opposite extreme and you have a channel. Price oscillating between the two gives you a framework: buy near the lower rail in an uptrend, take profits near the upper rail, and treat a decisive break of either as information.

What happens	What it usually means
Price breaks above the upper rail of a rising channel	Acceleration, often a blow-off. Frequently the last phase rather than a new beginning.
Price fails to reach the upper rail	The trend is weakening before any line has broken — an early warning.
Price breaks below the lower rail	The rate of advance has changed. Not necessarily a reversal, but the old framework is dead.
Price breaks down, then returns to the rail from below	A throwback. Old support acting as resistance — often the cleanest short entry a channel offers.

Check yourself

Your trendline connects three swing lows over four months. Price closes 2% below it, then over the next two weeks makes a higher low and resumes upward. What happened?

Simple bhasha mein

Line kheenchna aasaan hai

Do point mile toh koi bhi line kheench sakta hai — sawaal yeh hai ki teesra point us line pe aata hai ya nahi. Trendline bhi wahi. Agar aapko line thodi tedhi karke fit karni pad rahi hai, toh woh line market ki nahi, aapki umeed ki hai.

What to remember

Two points make a line; three touches make it evidence.
Be consistent about wicks or closes — switching is self-deception.
Steep trendlines break constantly and rarely signal reversals.
Use log scale for anything over two years.
A trendline break means the rate changed; only a structure break means the trend changed.

You reached the endMark it done and keep your streak going.

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Common questions

Short, direct answers to what people ask about this topic.

a straight line connecting successive swing lows in a rising market is called a: A trendline — drawn along successive swing lows in an uptrend, and along successive swing highs in a downtrend. Add a parallel line at the opposite extreme and you have a channel, with price oscillating between the two rails. It is the easiest tool on a chart to draw and by some distance the easiest to abuse, because with enough attempts a line can be made to touch almost anything.
how many touches does a trendline need to be valid: Three. Two points define any straight line — that is geometry, not analysis — so the line only becomes evidence when price respects it a third time without you having moved it. If price has cut through repeatedly and you keep redrawing the line flatter until it works, you are fitting a story to the data rather than reading it.
should a trendline be drawn on wicks or closing prices: Either is defensible, but you must pick one and hold it for the whole chart — switching between wicks and closes mid-chart to make a line fit is the commonest form of self-deception with this tool. Wick-to-wick lines capture the true extremes; close-to-close lines ignore intraday spikes and tend to be steadier on volatile smallcaps. Decide before you draw, not after you have seen which version flatters your view.
when should I use a log scale for a trendline: On any trendline spanning more than about two years. On a linear chart equal percentage moves take up more vertical space at higher prices, so a long line curves away from price for purely arithmetic reasons and produces breaks that mean nothing. A log scale makes equal percentage moves equal in height, which is the scale a multi-year trend has to be judged on.
throwback meaning in a price channel: A throwback is price breaking down through the lower rail of a channel and then returning to touch that rail from underneath — old support now acting as resistance. It is the same role-reversal behaviour that levels show, applied to a sloping line, and it gives a defined level to work against with a tight invalidation just above it. The mirror case after an upside break sees price return to the upper rail and find support there.