Trendlines: Uptrends and Downtrends in Trading

A trend is when prices move in a zigzag fashion but still follow an imaginary path or a trend in one direction. The trend can be further defined by a trend line. Trend lines connect significant lows in an uptrend and they connect significant highs in a downtrend, creating dynamic resistance. Dynamic resistance means that as time changes, so does the price of the support or resistance. For instance, in an uptrend, the level of support goes up as time progresses. In a downtrend, the level of resistance goes down as time progresses.