A long line of past price ranges together gives you a pattern. An up trending trendline represents major support for prices as long as it is not violated. These trendlines indicate the major zones of resistance . Drawing trendlines in a down trending market. Down trending trendlines are drawn by connecting the successive highs.
Trends can push and pull the price up or down.
Markets can also enter a period of quiet stability where the price forms a horizontal line sideways across the page. A sideways trending market is normally a difficult market to trade for a profit. A sideways pattern represents stability between supply and demand in the marketplace. Trendlines in this type of market, often referred to as a narrow trading range or congestive phase, are drawn by connecting both the highs and lows. An important concept in the use of trendlines is that of support and resistance.