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How to Draw a Trend Line

A trend line is a straight line through two swing lows in a rise, or two swing highs in a fall, run on to the right. This paper shows you a real rising line drawn through two lows of the euro in March and May 2025, which point of the candle the line goes through, the line on the daily chart with its third touch and the close that went under it, the three steps for drawing one, and the trend line tool and its Ray setting on your platform.

Difficulty
Intermediate
Reading time
5 min
Pages
8
Reviewed by
Saman Rahbar

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Two lows and a line

A trend line is a straight line through two swing lows in a rise, or two swing highs in a fall, run on to the right. The euro against the dollar made a low at 1.07326 on 27 March 2025 and a higher low at 1.1065 on 12 May. A line through the two rises about ten pips a day — a pip being the fourth decimal place, the smallest step most people count in. On 29 May the price came down to within ten pips of it and turned up, a third touch. On 28 July a day closed 80 pips under it.

Which point of the candle

The line goes through the lowest price each anchor day reached — the tip of the lower wick, the thin line beyond the candle's body — and not through where the day opened or closed. On 12 May that point is 1.1065. Drawn through the tips, the line is the floor the price actually touched, and later touches are read the same way: the 29 May low of 1.12098 came to within ten pips of it, which is what a touch looks like.

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