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How to read a chart


Prices trend in one of three ways: up (bull market), down (bear market) or sideways (range bound market). A trend line is used to help a trader visually recognize which trend direction is in place. Until the trend is “broken,” a trader can reasonably expect the trend to continue. Trend lines are drawn with the ‘draw trendline’ tool. Typically, when you draw a trend line, you want to connect two or more extreme high or low prices that define the trend. Here are a few examples:

Up trend

Down trend

Horizontal trend