One of the pieces of information that trend lines show very clearly is the direction of the current price movement, which can be upwards, downwards, or sideways. The direction is shown by the angle of the trend line, and the location of the price bars in relation to the trend line (above, below, or at the trend line).
Upwards
When the price is moving upwards, the trend line will be lower on the left and higher on the right, and the price bars will be mostly above the trend line. An upward trend line is shown in yellow in the first example chart (view the chart in full size).
Downwards
When the price is moving downwards, the trend line will be higher on the left and lower on the right, and the price bars will be mostly below the trend line. A downward trend line is shown in yellow in the second example chart (view the chart in full size).
Sideways
When the price is moving sideways, the trend line will be more horizontal than diagonal, and the price bars will be either above or below the trend line, or oscillating around the trend line. A sideways trend line is shown in yellow in the third example chart (view the chart in full size).
