As technical analysis is built on the assumption that prices trend, the use of trend lines is important for both trend identification and confirmation.

A trend line is a straight line that connects two or more price points and then extends into the future to act as a line of support or resistance. Many of the principles applicable to support and resistance levels can be applied to trend lines as well. It is important that you understand all of the concepts presented in our Support and Resistance article before continuing on.

An uptrend line has a positive slope and is formed by connecting two or more low points. The second low must be higher than the first for the line to have a positive slope.

Note that at least three points must be connected before the line is considered to be a valid trend line. Uptrend lines act as support and indicate that net-demand demand less supply is increasing even as the price rises. A rising price combined with increasing demand is very bullish, and shows a strong determination on the part of the buyers. As long as prices remain above the trend line, the uptrend is considered solid and intact.

A break below the uptrend line indicates that net-demand has weakened and a change in trend could be imminent. A downtrend line has a negative slope and is formed by connecting two or more high points. The second high must be lower than the first for the line to have a negative slope. Downtrend lines act as resistance, and indicate that net-supply supply less demand is increasing even as the price declines. A declining price combined with increasing supply is very bearish, and shows the strong resolve of the sellers.

As long as prices remain below the downtrend line, the downtrend is solid and intact. A break above the downtrend line indicates that net-supply is decreasing and that a change of trend could be imminent.

For a detailed explanation of trend changes, which are different than just trend line breaks, please see our article on the Dow Theory. High points and low points appear to line up better for trend lines when prices are displayed using a semi-log scale. This is especially true when long-term trend lines are being drawn or when there is a large change in price. Most charting programs allow users to set the scale as arithmetic or semi-log.

An arithmetic scale displays incremental values 5,10,15,20,25,30 evenly as they move up the y-axis. A semi-log scale displays incremental values in percentage terms as they move up the y-axis.A trend line connects at least 2 price points on a chart and is usually extended forward to identify sloped areas of support and resistance. Lines with a positive slope that support price action show that net-demand is increasing.

As long as the price action stays above this line, we have a bullish trend. Lines with a negative slope that act as resistance to the price action show that net-supply is increasing. As long as the price action stays under this line, we have a bearish trend.

Price usually retests a sloped trend line several times, until it breaks at which point we may have a trend reversal. The more points there are to connect, the stronger a trend line becomes. Different strategies have different rules on how far apart connected price points can be and whether to connect wicks or candle bodies, but all trend lines break eventually. TradingView has a smart drawing tool that allows users to visually identify trend lines on a chart. This tool can also be used to illustrate trends on indicators.

Major downtrend touched but rejected Friday. Bitcoin broke out to the topside of this channel and is in a general upwards trend. As the fibo retracement matches the current formation, the nearest target is This is why I'm Long on short term. I don't expect a huge move up yetso I will be happy with small profit. If you should follow my chart, don't forget your Stop Loss and take profit in time. On the longer term I still remain Bearish though, as shown in Super break above the 50ma on Friday which brought back the buyers.

If market rotates because of stimulus the rally may stall as investors go into the dumpster stocks. Bitcoin is moving inside of an important Triangle. A trendline has been broken, and we should start seeing higher highs.

To be sold on this, I would like to see some heavy volume at the breakout area. The rising wedge pattern is still in play, which will make sense to see a higher move before a crash. Also, As we have had decreasing volume on this upward trend, I am starting to wonder if this looks like a bull We have strong resistance around 1. Outperformed the FANG stocks last week until it hit resistance on the downtrend line. I reckon as long as it stays below the upper channel line, AUD will fall at least to potential targets 1 and 2, maybe below.

WIX has broken out from what looks to be a Bull-flag. Sold at first resistance level of Currently holding 1 sell and another at the next resistance Technicals are all pointing south. RSI in daily and 4hr in sell zone. Up trend line has broken south.Dictionary Term of the Day Articles Subjects.

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## Trend Lines

You're not signed up. Close navigation. Popular Terms. Straight or curved line in a trend chart that indicates the general pattern or direction of a time series data information in sequence over time. It may be drawn visually by connecting the actual data points or more frequently by using statistical techniques such as 'exponential smoothing' or 'moving averages. ABC analysis equipment environmental a Use 'trend line' in a Sentence We had to take a look at the trend line in order to see how we were doing in the business and work towards changing.

You should try to follow the trend line and figure out what made the line jump in the ways that it did. Profits in the third quarter were up sharply in the previous year, according to the trend line ; this was a much better year thanwhich showed little to no profit. Show More Examples. You Also Might Like Adam Colgate. How to Make Money in Globalization.

As individual national economies gradually merge into broader regional economies, a trend toward increasing globalization currently prevails. This increasing movement toward larger and larger trade blocs is especially notable in regions such as Read more. How to Read an Earnings Report. Sources of Inspiration: Entrepreneur Success Basics of Negotiation for Beginners.

Mentioned in These Terms trend line forecasting.Polynomial trending describes a pattern in data that is curved or breaks from a straight linear trend.

It often occurs in a large set of data that contains many fluctuations. As more data becomes available, the trends often become less linear, and a polynomial trend takes its place. Graphs with curved trend lines are generally used to show a polynomial trend. Data that is polynomial in nature is described generally by:. Big data and statistical analytics are becoming more commonplace and easy to use; many statistical packages now regularly include polynomial trend lines as part of their analysis.

When graphing variables, analysts these days generally use one of six common trend lines or regressions to describe their data. These graphs include:. Each of these parameters has different benefits based on the properties of the underlying data. In mathematics, a polynomial is an expression consisting of variables also called indeterminates and coefficients that involves only the operations of addition, subtraction, multiplication, and non-negative integer exponents of variables.

Polynomials appear in a wide variety of areas of mathematics and science. For example, they are used to form polynomial equations, which encode a wide range of problems, from elementary word problems to complicated problems in the sciences.

They are used to define polynomial functions, which appear in settings ranging from basic chemistry and physics to economics and social science. They are also used in calculus and numerical analysis to approximate other functions. In advanced mathematics, polynomials are used to construct polynomial rings and algebraic varieties, central concepts in algebra and algebraic geometry. For example, polynomial trending would be apparent on the graph that shows the relationship between the profit of a new product and the number of years the product has been available.

The trend would likely rise near the beginning of the graph, peak in the middle and then trend downward near the end.

### What does "trend" mean when referring to a graph?

If the company revamps the product late in its life cycle, we'd expect to see this trend repeat itself. This type of chart, which would have several waves on the graph, would be deemed to be a polynomial trend. An example of such polynomial trending can be seen in the example chart below:. Financial Ratios. Tools for Fundamental Analysis. Financial Analysis. Your Money. Personal Finance.

Your Practice. Popular Courses. What Is Polynomial Trending? Compare Accounts. The offers that appear in this table are from partnerships from which Investopedia receives compensation.Trendlines are easily recognizable lines that traders draw on charts to connect a series of prices together or show some data's best fit.

The resulting line is then used to give the trader a good idea of the direction in which an investment's value might move. A trendline is a line drawn over pivot highs or under pivot lows to show the prevailing direction of price. Trendlines are a visual representation of support and resistance in any time frame.

They show direction and speed of price, and also describe patterns during periods of price contraction. The trendline is among the most important tools used by technical analysts. Instead of looking at past business performance or other fundamentalstechnical analysts look for trends in price action.

A trendline helps technical analysts determine the current direction in market prices. Technical analysts believe the trend is your friend, and identifying this trend is the first step in the process of making a good trade. To create a trendline, an analyst must have at least two points on a price chart.

Some analysts like to use different time frames such as one minute or five minutes. Others look at daily charts or weekly charts. Some analysts put aside time altogether, choosing to view trends based on tick intervals rather than intervals of time. What makes trendlines so universal in usage and appeal is they can be used to help identify trends regardless of the time period, time frame or interval used.

The trendline drawn has a positive slope and is therefore telling the analyst to buy in the direction of the trend. Trendlines are relatively easy to use. A trader simply has to chart the price data normally, using open, close, high and low. Below is data for the Russell in a candlestick chart with the trendline applied to three session lows over a two month period.

The trendline shows the uptrend in the Russell and can be thought of as support when entering a position. In this case, trader may choose enter a long position near the trendline and then extend it into the future. If the price action breaches the trendline on the downside, the trader can use that as a signal to close the position.

This allows the trader to exit when the trend he or she is following starts to weaken. Trendlines are, of course, a product of the time period. In the example above, a trader doesn't need to redraw the trendline very often. On a time scale of minutes, however, trendlines and trades may need to be readjusted frequently. More than one trendline can be applied to a chart. Traders often use a trendline connecting highs for a period as well as another to connect lows in order to create channels.

A channel adds a visual representation of both support and resistance for the time period being analyzed. Similar to a single trendline, traders are looking for a spike or a breakout to take the price action out of the channel. They may use that breach as an exit point or an entry point depending on how they are setting up their trade.

Trendlines have limitations shared by all charting tools in that they have to be readjusted as more price data comes in. A trendline will sometimes last for a long time, but eventually the price action will deviate enough that it needs to be updated.If you were given a graph and the question asks you to "Identify the trends in the graph", what does that mean? To my understanding, you have to describe how the graph is showed, the rising and falling of the graph.

For example, how the sale number of X product have increased during year to Thy Kingdom come is a line from the prayer known as the Lord's Prayer.

Thy Kingdom come is a reference to the Prophecy that The Lord God will one day return to the Earth and set up his Kingdom here forever. Graph theory is a branch of mathematics concerned about how networks can be encoded and their properties measured. It has been enriched in the last decades by growing influences from studies of social and complex networks.

The origins of graph theory can be traced to Leonhard Euler who devised in a problem that came to be known as the "Seven Bridges of Konigsberg". In this problem, someone had to cross once all the bridges only once and in a continuous sequence, a problem the Euler proved to have no solution by representing it as a set of nodes and links. This led the the foundation of graph theory and its subsequent improvements.

In transport geography most networks have an obvious spatial foundation, namely road, transit and rail networks, which tend to be defined more by their links than by their nodes. This it is not necessarily the case for all transportation networks.

For instance, maritime and air networks tend to be more defined more by their nodes than by their links since links are often not clearly defined. A telecommunication system can also be represented as a network, while its spatial expression can have limited importance and would actually be difficult to represent.

Mobile telephone networks or the Internet, possibly to most complex graphs to be considered, are relevant cases of networks having a structure that can be difficult to symbolize. However, cellular phones and antennas can be represented as nodes while the links could be individual phone calls. Servers, the core of the Internet, can also be represented as nodes within a graph while the physical infrastructure between them, namely fiber optic cables, can act as links.

Consequently, all transport networks can be represented by graph theory in one way or the other. Vertex Node. A node v is a terminal point or an intersection point of a graph.Joinsubscribers and get a daily digest of news, geek trivia, and our feature articles. By submitting your email, you agree to the Terms of Use and Privacy Policy.

You can add a trendline to a chart in Excel to show the general pattern of data over time. You can also extend trendlines to forecast future data. Excel makes it easy to do all of this. A trendline or line of best fit is a straight or curved line which visualizes the general direction of the values. You can add a trendline to an Excel chart in just a few clicks. The Format Trendline pane opens and presents all trendline types and further options.

In the first example, the line graph had only one data series, but the following column chart has two. If you want to apply a trendline to only one of the data series, right-click on the desired item. You might want to format the trendline differentlyâ€”especially if you have multiple trendlines on a chart. I also increased the width to 2 pts and changed the dash type.

**Describe a graph in English - Learn Business English and IELTS vocabulary**

A very cool feature of trendlines in Excel is the option to extend them into the future. This gives us an idea of what future values might be based on the current data trend. The R-squared value is a number that indicates how well your trendline corresponds to your data.

The closer the R-squared value is to 1, the better the fit of the trendline. A value of 0. This is a reasonable fit, as a value over 0. The Best Tech Newsletter Anywhere. Joinsubscribers and get a daily digest of news, comics, trivia, reviews, and more.

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