how are trend lines helpful?
When a trend line is plotted connecting the highs the slope is downwards, indicating a downtrend and when a trend line is plotted connecting the lows, the trend line slopes upwards, indicating an uptrend. Trend lines can be used on the OHLC bar chart, candlestick charts and even the closing line charts. The chart below shows an example trend line that was drawn connecting the consecutive highs, thus forming a downtrend or a slanting resistance line.