A trendline is a graphical tool that smooths out price fluctuations and shows the overall trend of a security. There are three main types of trendlines: uptrend, downtrend, and sideways trend.
An uptrend is when prices are consistently increasing over time. A downtrend is when prices are consistently decreasing over time. A sideways trend is when prices are not moving much over time.
These two great lessons on stock market trends and how to draw trendlines will further your education.
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