Want to understand where the market’s heading? Trendlines, support and resistance have you covered!
These show the market direction and help identify levels where prices might change. Let’s dive into using them to your advantage!
What is a trendline?
A trendline is a simple line you draw directly on the chart to see if the price is going up, going down or moving sideways.
🖊️ To draw one, press on the chart, then
and choose Trend Line.
Uptrend: Prices going up
⬆️ An uptrend happens when prices are rising, and each new high and low is higher than the last.
How to draw an uptrend line:
💡 A quick tip: Traders often buy when the price touches the uptrend line and bounces back up. Ride the wave! |  |
Downtrend: Prices going down
⬇️ A downtrend is when prices are falling, and each new high and low is lower than the previous one.
How to draw a downtrend line:
💡 A quick tip: Traders often sell when the price touches the downtrend line and moves downward. Go with the flow! |  |
Sideways trend: No clear direction
↔️ When not much is going on, the market can move sideways. That’s when prices go back and forth without a clear trend.
How to draw a sideways trendline:
💡 A quick tip: Traders often wait for a breakout before taking action. Patience pays off! |  |
Support line: The market’s floor
🏠 The support is where the price tends to stop falling and bounce back up.
How to draw a support line:
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Resistance line: The market’s ceiling
⛅ The resistance is where the price tends to stop rising and fall back down.
How to draw a support line:
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Automatic support and resistance with pivot points
Don’t want to draw the lines manually? Let pivot points do the work for you! Pivot points automatically mark support and resistance levels.
To add them, press on the chart, then
Indicators and choose Pivot Points Standard. That’s it! The lines will appear on your chart.
How to read pivot points
Pivot points automatically mark levels to track:
Central pivot (P). The middle line. When the price is above it, that suggests a bullish trend, while the price being below suggests a bearish trend
Support (S1–S5). Lines below the current price indicate where the price might stop falling and start rising again
Resistance (R1–R5). Lines above the current price indicate where the price might stop rising and start falling again
An example trade with support and resistance
Let’s say you spot an uptrend and draw a trendline.
You mark support and resistance with pivot points
After a pullback (when the price drops), you enter a buy trade when the price bounces back up from support
Set the stop loss below support and take profit at the next resistance
Quick quiz: Test your knowledge
Why do traders use support and resistance lines?
To predict market news
To forecast where the price might stop or change direction
To track account balance
To avoid trading altogether
Summing up
You did great! Here’s what you’ve learned:
How to draw trendlines and identify key levels
What support and resistance are
How pivot points automatically mark support and resistance
How to use these tools to plan smarter trades
Next up, we’ll explore trading indicators and how to use them effectively. Keep going — you’re doing amazing!
The correct answer is 2
Support and resistance lines act like visible “floor” and “ceiling” levels on a price chart. Support is a level where the price tends to stop falling and might bounce back up, while resistance is a level where the price often stops rising and might go back down.