Moving Trend Lines: Much like a moving average, angled—or moving—trend lines are a great way to see how predictable the market's movements can be. Simply by connecting 2 points, a trader, more often than not, can accurately predict a chart's movement. Below I have drawn a resistance trend line and a support trend line based on the first two points on the trend line. The market reacted almost perfectly when it reached both of these lines and bounced up and dipped down respectively.
These quick turnarounds in the market are known as pivot points and happen both on the upside and downside of the price movement. Some traders utilize this tool on an intra-day period, but many traders find it more effective when you go back a few days or weeks to see the bigger picture and be able to discover the larger, more supported trend lines like the ones below.
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