Basic rules for drawing Trendlines 

• Trendlines are lines drawn by joining 2 significant points on the chart.
• The angle of a good Trendline should be from 0 to 45 degrees.
• Support is when a share price touches a Trendline and moves up.
• Resistance is when a share price touches a Trendline and moves down.
• One should buy when the price takes support on the Trendline and moves up & Sell when the price meets with resistance at a Trendline and moves down.
• Support becomes Resistance and Resistance becomes Support on breach of a Trendline.
• Breakout is the area on the chart where the share prices cuts the Trendline either from Top to Bottom or from Bottom to Top.
• Pullback is the tendency of the share prices to come back towards the Trendline after a breakout.
• Good volumes at breakouts in the upward direction indicate strength and in the downward direction indicate weakness in the share.
• Channel Lines are 2 parallel lines within which the price of a share moves in a sideways trend. They are very effective in a sideways market and also when the trend changes from sideways to either direction.

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