What are trend lines in financial technical analysis?

Trend lines are like invisible arrows that show which way prices are moving in a game.

Imagine you're playing a game where you and your friend take turns jumping on a trampoline. If your friend keeps bouncing higher and higher, you might draw an arrow pointing up to show they're going upward, that's like a rising trend line. On the other hand, if your friend starts landing lower each time, you'd draw an arrow pointing down, that's a falling trend line.

Think of a trend line as a path that connects dots on a graph. If prices go up and down but mostly keep rising, you can connect the higher points with a straight line, that’s your trend line. It acts like a guide to show if things are going up or down over time.

Traders use trend lines like map markers. If the price stays above the line, it means things are still going strong, like when you're jumping really high on the trampoline! But if the price drops below the line, it's a sign that maybe it’s time to take a break, just like when your friend starts landing lower.