#A trend line is a straight line that visually connects key points of the current trend. It resembles a diagonal straight line that the price touches several times during the trend. In scalping, a trend line is also known as a "sloping level".

Trend lines form local levels of support and resistance. The steeper the slope, the stronger the trend. In an uptrend, the line is drawn through the lower points of the chart. In a downtrend, the line is drawn through the upper points of the chart. By studying trend lines, traders look for signals of trend continuation or reversal.

The main characteristic of a strong trend is the gradual updating of local highs (if it is an uptrend) or lows (if it is a downtrend). If the price highs are not updated, which usually happens near the end of a trend, it may be a sign of a reversal.

If the price reverses in an uptrend and bounces back to the line, it could be a sign that we are in a long position. If the price breaks the line, a downtrend may emerge, which is a signal to go short. A downtrend line acts similarly, but in the opposite direction.

The example above shows a downward trend. The arrows show where the trend has been tested. It can be seen that after the last touch, the price stopped updating the lows and started to "push up" to the level. Then, an upward breakout occurred. The trend line stops being a resistance line and turns into a support line in a new movement.

Typically, a trend is not considered valid if the ascending trend line is broken to the downside and the descending trend line is broken to the upside. When these zones maintain the trend, the market direction changes.

To draw a trend line, at least three points must be used. Typically, the first points can be marked to predict the trend, the third and subsequent points to confirm it. If the price touches the line more than three times without breaking it, the trend can be considered strong.

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