TL connects a series of high or low points in order to confirm a trend. It could be upward or downward or slanted or horizontal. In order to confirm a TL there should be at least two relative price high or lows.
The most important point, the more number of times the price touches a trend line, the more significant and valid it becomes.
Sometimes there is a possibility of drawing a trend line; the exact points do not match up clearly. As in ICICI Bank Weekly chart shown below. To avoid such over-reactions in prices, we can draw a internal trend line.
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| ICICI BANK Weekly chart |
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