Trend Line

Trend Line
The simplest tool for a chart analysis is the trend line. With it, trends in price movements can be visualized and emphasized. Trading decisions may be based on analysis of trend lines. Trend lines may be used for:
  • Visualizing trends
  • Marking market phases
  • Marking resistance and support levels
You can find the trend line tool in the Chart Tools group in the toolbar.

Entering a Trend Line

  1. Open a symbol chart.
  2. Click on the trend line tool in the toolbar.
  3. Click into the chart to set the starting point of the trend line.
  4. Keep the mouse button pressed and move the pointer to the end point of the trend line. Release the mouse button.
You can align the anchor points of the trend line to a certain price level. To do so, activate the Snap Mode by clicking on the magnet symbol in the toolbar. Now when you draw a trend line in the chart, it is positioned exactly at high and/or low points.

Editing a Trend Line

  • To move the trend line, drag it with the mouse (the mouse pointer turns into a hand symbol) and move it freely. Release the mouse button when done.
  • To change the trend line angle, click the anchor points of the line (the mouse pointer turns into an axis of coordinates symbol) and drag into another position.
  • Note that the trend line cannot be moved freely if the Snap Mode is active. If necessary, switch it off by clicking the magnet symbol in the toolbar.
    • You can duplicate a trend line in three ways (see the chapter Chart Tools).
    • To extend the length of the trend line until the right or left edge of the chart, double-click on the respective anchor point at the end of the trend line.
    • When the trend line is selected, you can edit the properties in the toolbox.
    • The alert function is available for the trend line. To set an alert, set the Alert Mode from Disabled to one of the options (see below).
    • To delete the trend line, right-click on it and select Delete from the context menu. Alternatively, select the trend line and press the DEL key.

    Using the Measurement Function

    In the trend line properties, you can switch on the measurement function.

    The following information is displayed for the time axis:
    • Number of bars (trading periods) between the two anchor points
    • Number of calendar days between the two anchor points
    Example: "47 Bars (2d)"

    The following information is displayed for the price axis:
    • Absolute price difference between the price levels of the anchor points
    • Relative price movement between the price levels of the anchor points
    • Relative gradient between periods for the slope between the two anchor points

    "3.48 (+5.7)"



    Trend Line Properties

    Extend Left/Extend Right - Select whether the line is to be extended to the left and/or right until the edge of the chart.

    Graphic Properties

    The following properties can be set for the trend line tool:

    Color - Here you can select a color for the line.

    Width - Here you can set a line width by entering a number.

    Style - Here you can select a line style, e.g. solid or dotted.

    Shadow - Here you can set a shadow for emphasizing the line with a 3D effect. Four settings are available.

    Label - Here you can set the value label for the last data point to visible or hidden. The label is only displayed when the trend line is drawn through, below or above the last data point (candle, bar etc.). In Tradesignal you can also specifiy the location at which the label should be displayed.

    Measurement - Here you can switch the measurement function on or off.

    Alert Properties

    The trend line tool can be used with various kinds of alerts.

    Alert Direction - Here you can select from the list whether crossings of all types lead to alerts or only crossings in a certain direction.

    Alert Mode - Here you can select an alert mode from the list. Select whether every crossing is considered or only one crossing per trading period or trend line.

    Alert Name - Here you can specify a name for alerts generated by this tool. It will be included in the signal field of the alert.

    Alert Trigger - Here you can select when an alert should be triggered.
    • Crossed: Triggers when the price crosses the tool, e.g. goes from below the tool to above the tool
    • Hit or Crossed: Same as above, but also triggers when the price merely hits the tool. This setting is useful for a Point&Figure Chart.
    For further information on alert modes, see the chapter Alerts.