Downward trend lines are used when the price is consistently moving downwards (a downward trend). Downward trend lines are drawn from a high point on the left to a low point on the right (\), and are drawn above the price bars, so that it appears as though the trend line is keeping the prices down (known as resistance). Trend lines will be easy to fit to the prices bars if the current price movement is smooth, but trend lines will not fit as well if the price movement is not smooth.
Trend Lines can be defined as both a mathematical formulae (which is useful for automated trend line trading), and as a visual pattern on a price chart (which can be easily recognized by human traders). This tutorial will cover drawing trend lines visually, as this is the most useful method for beginning day traders.
