Contenido

Las líneas de tendencia son una de las herramientas más simples, y a la vez una de las más valiosas, dentro del análisis gráfico. Una línea de tendencia al alza es una línea recta que une los mínimos sucesivos de una tendencia alcista, y por lo tanto aumenta su valor conforme se extiende a la derecha. Una línea de tendencia a la baja es una línea recta que une máximos sucesivos dentro de una tendencia a la baja, por lo que disminuye su valor conforme se desplaza a la derecha.

Drawing a trend line

To draw a trend line there must be sufficient evidence of a trend, whether bullish or bearish. To draw an upward trend line it is necessary that there are at least two successively higher lows, which suggest an upward trend. As is known, any two points define a straight line, so these first two minimums allow us to propose a trend line, which must be extended to the right indefinitely. This line is known as the tentative trend line. It is required that there be a third minimum that respects the line proposed as confirmation. From that moment on, the line can be considered a valid trend line, and becomes a very useful tool for the technical analyst.

The drawing of a downward trend line is similar, starting from two successively lower maximums, which allow us to draw a tentative trend line, and which must be confirmed by a third maximum, lower than the second, which confirms the trend line, and which allows us to consider it a valid trend line.

Some important points about drawing trend lines to remember are:.

Uses of a trend line

Once a third point has confirmed a trend line, and the price has moved in the original direction, the trend line becomes very useful in several ways. The second principle of technical analysis states that a current trend will tend to remain in force. Furthermore, once a trend acquires a certain angle or acceleration, it will tend to maintain this behavior. The trend line, therefore, indicates the possible end of shorter-term retracement periods, and indicates the moment when the trend is changing.

In an uptrend, for example, prices will reach the trend line during retracement periods. Because during an uptrend you look to buy in the valleys, the trend line will generate buy signals.

As long as the line is not broken, it should be assumed that the trend is still in force and therefore any approach to this line should be interpreted as a buy signal. A trend reversal signal would be generated when the trend line is broken, that is, when the price in an uptrend falls below the trend line, or when the price in a downtrend rises above the drawn line. Frequently, the breaking of the trend line is one of the first signs of a trend change.

Relevance of a trend line

The criteria to evaluate the relevance of a trend line are two: the time it has remained in force and the number of times it has been tested. A trend line that remains in effect after six months has greater relevance than one that has remained in effect for only a few days. A line that has been tested eight times is more reliable than one that has been tested only once. The more relevant the trend line, the more confidence it inspires and therefore the more important a breakout becomes.

As with supports and resistances, there is no exact criterion to determine the validity of a breakout of a trend line. As a general rule, when there is a close beyond a trend line the move has greater relevance than an intraday breakout.

Inclination of a trend line

The relative steepness of a trend line is also relevant. In general, the most reliable trend lines tend to approach forty-five degrees. This line reflects that the advance or decline of prices is in harmonious balance over time. If a trend has too steep an angle, it is suspected that the movement has been too fast and is not sustainable. A slope of the trend line that is too flat implies that the trend is weak and therefore unreliable.

According to the Fibonacci retracement theory, it can be assumed that a trend with a forty-five degree angle can have a 50% retracement. A trend that is too steep could have a larger percentage retracement, while a trend that is too flat could have a smaller one.

La línea de canal es una herramienta que resulta muy útil en aquellas tendencias en las que se logra identificar. Es una línea paralela a la línea de tendencia que se traza del otro lado de la gráfica. Para un canal alcista, la línea de canal se trazaría paralela a la línea de tendencia, pasando por los máximos sucesivos. En una tendencia bajista, la línea de canal se trazaría paralela a la línea de tendencia por debajo de los mínimos sucesivos. Al conjunto de la gráfica, la línea de tendencia y la línea de canal se le denomina simplemente canal ascendente o descendente.

Drawing a channel line

Laying out a channel line is relatively simple. In the case of an uptrend, once the uptrend line has been drawn, a parallel line, usually dotted, is drawn through the first high of the trend. If the next bullish impulse reaches the channel line without breaking it, then we suspect the existence of a bullish channel. Confirmation of the channel would occur at the time the trend line is validated. The layout is equivalent for a downward channel line. Some points to remember about laying out channel lines are:.

Uses of a channel line

Because the formation of a channel within the price is relatively rare, the confirmation of a channel line should be considered a fortunate circumstance from which to take advantage. In the case of an uptrend, the trend line can be used to generate buy signals, as discussed above. The channel line can then be used to take short-term profits, assuming that the price could return and allow a better entry level before its next bullish push.

The breaking of a channel line generates signals of trend strength, interpreted as permanence in purchase positions, and even an opportunity for possible additional purchases. Again, this is a weak trend continuation signal, which should be taken with caution.

After the existence of a channel has been confirmed, the failure of bullish momentum to reach the level of the channel line can be interpreted as trend weakness, which would lead to suspicion of a possible breakout of the main trend line.

Contenido

Las líneas de tendencia son una de las herramientas más simples, y a la vez una de las más valiosas, dentro del análisis gráfico. Una línea de tendencia al alza es una línea recta que une los mínimos sucesivos de una tendencia alcista, y por lo tanto aumenta su valor conforme se extiende a la derecha. Una línea de tendencia a la baja es una línea recta que une máximos sucesivos dentro de una tendencia a la baja, por lo que disminuye su valor conforme se desplaza a la derecha.

Drawing a trend line

To draw a trend line there must be sufficient evidence of a trend, whether bullish or bearish. To draw an upward trend line it is necessary that there are at least two successively higher lows, which suggest an upward trend. As is known, any two points define a straight line, so these first two minimums allow us to propose a trend line, which must be extended to the right indefinitely. This line is known as the tentative trend line. It is required that there be a third minimum that respects the line proposed as confirmation. From that moment on, the line can be considered a valid trend line, and becomes a very useful tool for the technical analyst.

The drawing of a downward trend line is similar, starting from two successively lower maximums, which allow us to draw a tentative trend line, and which must be confirmed by a third maximum, lower than the second, which confirms the trend line, and which allows us to consider it a valid trend line.

Some important points about drawing trend lines to remember are:.

Uses of a trend line

Once a third point has confirmed a trend line, and the price has moved in the original direction, the trend line becomes very useful in several ways. The second principle of technical analysis states that a current trend will tend to remain in force. Furthermore, once a trend acquires a certain angle or acceleration, it will tend to maintain this behavior. The trend line, therefore, indicates the possible end of shorter-term retracement periods, and indicates the moment when the trend is changing.

In an uptrend, for example, prices will reach the trend line during retracement periods. Because during an uptrend you look to buy in the valleys, the trend line will generate buy signals.

As long as the line is not broken, it should be assumed that the trend is still in force and therefore any approach to this line should be interpreted as a buy signal. A trend reversal signal would be generated when the trend line is broken, that is, when the price in an uptrend falls below the trend line, or when the price in a downtrend rises above the drawn line. Frequently, the breaking of the trend line is one of the first signs of a trend change.

Relevance of a trend line

The criteria to evaluate the relevance of a trend line are two: the time it has remained in force and the number of times it has been tested. A trend line that remains in effect after six months has greater relevance than one that has remained in effect for only a few days. A line that has been tested eight times is more reliable than one that has been tested only once. The more relevant the trend line, the more confidence it inspires and therefore the more important a breakout becomes.

As with supports and resistances, there is no exact criterion to determine the validity of a breakout of a trend line. As a general rule, when there is a close beyond a trend line the move has greater relevance than an intraday breakout.

Inclination of a trend line

The relative steepness of a trend line is also relevant. In general, the most reliable trend lines tend to approach forty-five degrees. This line reflects that the advance or decline of prices is in harmonious balance over time. If a trend has too steep an angle, it is suspected that the movement has been too fast and is not sustainable. A slope of the trend line that is too flat implies that the trend is weak and therefore unreliable.

According to the Fibonacci retracement theory, it can be assumed that a trend with a forty-five degree angle can have a 50% retracement. A trend that is too steep could have a larger percentage retracement, while a trend that is too flat could have a smaller one.

La línea de canal es una herramienta que resulta muy útil en aquellas tendencias en las que se logra identificar. Es una línea paralela a la línea de tendencia que se traza del otro lado de la gráfica. Para un canal alcista, la línea de canal se trazaría paralela a la línea de tendencia, pasando por los máximos sucesivos. En una tendencia bajista, la línea de canal se trazaría paralela a la línea de tendencia por debajo de los mínimos sucesivos. Al conjunto de la gráfica, la línea de tendencia y la línea de canal se le denomina simplemente canal ascendente o descendente.

Drawing a channel line

Laying out a channel line is relatively simple. In the case of an uptrend, once the uptrend line has been drawn, a parallel line, usually dotted, is drawn through the first high of the trend. If the next bullish impulse reaches the channel line without breaking it, then we suspect the existence of a bullish channel. Confirmation of the channel would occur at the time the trend line is validated. The layout is equivalent for a downward channel line. Some points to remember about laying out channel lines are:.

Uses of a channel line

Because the formation of a channel within the price is relatively rare, the confirmation of a channel line should be considered a fortunate circumstance from which to take advantage. In the case of an uptrend, the trend line can be used to generate buy signals, as discussed above. The channel line can then be used to take short-term profits, assuming that the price could return and allow a better entry level before its next bullish push.

The breaking of a channel line generates signals of trend strength, interpreted as permanence in purchase positions, and even an opportunity for possible additional purchases. Again, this is a weak trend continuation signal, which should be taken with caution.

After the existence of a channel has been confirmed, the failure of bullish momentum to reach the level of the channel line can be interpreted as trend weakness, which would lead to suspicion of a possible breakout of the main trend line.