TRENDLINES

DEFINTION
Up trendlines are lines drawn from left to right alongside successive reaction
lows.
Down trendlines are lines drawn from left to right with a downward slope
alonside successive rally peaks.

DRAWING
There must be at least two supports or resistances already formed to draw a
trendline. Most technicians wait until the third wave (after reaction low in the
diagram) starts going up. Some may require that the second rally peak (in
the diagram) breaks the previouse resistance level, others might only need
for the second wave to retrace 50% of the previouse wave and others still
might only require that the second wave reaches the same price point of the
previouse peak.
A tentative trendline is one that has been tested by only 2 points. If a
trendline has been touched by more than 2 points, this is a valid trendline.

VIOLATION
A corrective wave may come close or just touch a valid trendline before
reversing.