Definition
An ascending line is often drawn through rising swing lows, while a descending line connects falling swing highs. It provides a reference for how price is progressing over time, rather than a fixed horizontal level. Two points define a line; later reactions test its relevance.
How It Works
Choose a consistent timeframe and specify whether anchors use wicks or closing prices. Extending the line shows a changing reference price at future times, not a forecast that price must follow it. Linear and logarithmic scales can produce different slopes and apparent breaks.
Key Considerations
Anchor selection is subjective, and repeatedly moving the line to fit new data weakens a testable rule. A break may indicate a change in pace without proving a reversal. Interpret it with surrounding structure and define confirmation conditions before using it in a trading decision.