A strong trend line is one that has frequent contact with the market. The more times that the price action ‘bounces’ off the trend line, the more important that trend becomes. As a rule of thumb, once a trend line has been established – and it takes only two points initially – look for a third point to give confirmation that there is definitely support or resistance at that point. Take a look at the difference between a weak and strong trend.

With a support line as shown here, the buying strength that carries the market above the trend line is diminishing and eventually sellers dominate. This is a trend under pressure.

There are two maxims about trends, which are often quoted and can be expensive to ignore.

“A trend is more likely to continue than break”
“The trend is your friend”

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