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Module B · Technical Analysis·Lesson 2

Trend Lines & Channels

Draw and trade with trend lines and price channels

4 sections · 3 quiz questions · ~5 min read

Guided course path

Keep trend lines & channels inside the live track.

You are reading a reference lesson. The live course path gives you the lesson order, checks, saved progress, and next step. This is the clearest live path for trend, levels, candles, and multi-timeframe chart reading.

Closest track: Technical Analysis + Price ActionFirst lesson: The top-down framework
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Drawing Trend Lines

Connect two or more swing lows in an uptrend (ascending trend line) or two or more swing highs in a downtrend (descending trend line). The more touch points, the more valid the trend line.
Trend LineUpward Trend Line

Uptrends & Downtrends

An uptrend makes higher highs and higher lows. A downtrend makes lower highs and lower lows. Trade in the direction of the trend — "the trend is your friend." Counter-trend trading is for advanced traders only.
Wick points at a chalkboard explaining that a trend line connects two or more swing lows, and that each extra touch makes the line more meaningful.Drawing a trend lineConnect 2+ swing lowsMore touches = stronger
Wick saysConnect two or more swing lows to draw an uptrend line; more touches make it stronger.

Price Channels

A channel forms when you draw parallel lines along the highs and lows of a trend. In an ascending channel, buy near the lower line and take profit near the upper line. Channels help define the rhythm of a trend.
Wick points at a practice chart that climbs in steps, with stickers on a higher low and a higher high, showing what an uptrend looks like.Spot the trendPractice chartHigher lowHigher high
Wick saysAn uptrend keeps making higher highs and higher lows.

Trend Line Breaks

When a trend line breaks with strong momentum and volume, it signals a potential trend reversal. Wait for a retest of the broken trend line as new support/resistance before entering a trade in the new direction.
Wick climbs three steps labeled line breaks, wait for retest, then decide, teaching patience after a trend line break instead of jumping in right away.1Line breaks2Wait forretest3Then decide
Wick saysWhen a trend line breaks, wait for price to come back and test it before you act.
Quick check

Did it stick?

Try to answer each one before you peek at the explanation.

1

How many touch points minimum do you need for a valid trend line?

2

An uptrend is defined by a series of higher highs and higher lows.

3

Match the concept to its description:

Ascending Channel→Parallel upward lines
Trend Break→Potential reversal signal
Higher Low→Sign of an uptrend