Sideways trend lines are used when the price is moving sideways (also known as consolidation). Sideways trend lines are drawn from a point on the left to a similar point on the right (-), and are drawn either above or below the price bars (known as support or resistance). Sideways trend lines will be easy to fit to the prices bars if the price movement is really horizontal, but sideways trend lines will not fit as well if the price movement is rising or falling slightly.
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.
