As long as prices remain above the trend line, the uptrend is considered solid and intact.
Number Line Method Coordinate Plane Method Community Q&A If you're studying algebra and you've been asked to graph inequalities, don't fret.You can graph inequalities on either a number line or in the coordinate plane (with x and y axis) – both are good ways to visually represent an inequality.With a little practice, you'll be graphing inequalities like a pro.Technical analysis is built on the assumption that prices trend.Trend Lines are an important tool in technical analysis for both trend identification and confirmation.A trend line is a straight line that connects two or more price points and then extends into the future to act as a line of support or resistance.
Many of the principles applicable to support and resistance levels can be applied to trend lines as well.
It is important that you understand all of the concepts presented in our Support and Resistance article before you continue.
An uptrend line has a positive slope and is formed by connecting two or more low points.
The second low must be higher than the first for the line to have a positive slope.
Uptrend lines act as support and indicate that net-demand (demand less supply) is increasing even as the price rises.
A rising price combined with increasing demand is very bullish, and shows a strong determination on the part of the buyers.