← Trendline Course · Module 15 of 15
Every key term in one place — plus the mindset that makes it all work.
Bear / Bearish — Describing downward price movement or a negative market outlook.
Break of Structure — When price exceeds a previous significant swing high or low, confirming a change in trend direction.
Bull / Bullish — Describing upward price movement or a positive market outlook.
Candlestick — A visual representation of price action for a period, showing open, close, high, and low. The body is the open-to-close range; the wicks show the extreme high and low.
Confluence — When multiple independent technical factors align at the same price level, increasing the probability that price reacts there.
Day Trader — A trader who opens and closes positions within a single trading day.
Downward Trendline — A line connecting lower highs. Acts as diagonal resistance. Bearish.
Entry — The price at which you open a trade.
Fair Value Gap (FVG) — A gap created by a large, fast move, leaving an area of price that was never properly traded. Markets often return to "fill" these gaps.
Fake Out — A false trendline break with small candles and no follow-through, often reversing quickly and trapping traders who entered on the break.
Higher High / Higher Low — A swing point above the previous one. A series of them indicates an uptrend.
Liquidity — Areas where many stop-loss orders are clustered. Markets often move to these levels to trigger them before reversing.
Long Position — A buy trade. Profitable when price rises.
Lower High / Lower Low — A swing point below the previous one. A series of them indicates a downtrend.
Position Sizing — The number of shares/contracts/units traded, set by account size and maximum acceptable risk.
Ray Tool — A drawing tool that creates a trendline extending infinitely to the right from two anchor points.
Resistance — A level where selling pressure has historically stopped price from rising. A ceiling.
Scalper — A trader who makes many small trades over very short timeframes.
Short Position — A sell trade. Profitable when price falls. Involves borrowing and selling shares to buy back cheaper.
Stop Loss — An automatic order to close a trade at a set price to limit losses.
Support — A level where buying pressure has historically stopped price from falling. A floor.
Swing High / Swing Low — A peak (hill) or trough (valley) on the chart where price reverses direction.
Swing Trader — A trader who holds positions for days to weeks, typically using 4-hour or daily charts.
Timeframe — The period each candle represents (e.g., 5-minute, 4-hour, daily).
Top-Down Analysis — Beginning analysis on the highest timeframes and working down to the trading timeframe.
Touchpoint — An instance where price returns to a trendline and reacts without breaking through. More = more reliable.
Trailing Stop — A stop moved progressively in the direction of a winning trade to lock in profit while letting it run.
Trend Reversal — When the overall direction of price changes. Often signaled by a trendline break.
Trendline — A diagonal line connecting swing highs or lows to represent a trend's direction and slope.
Upward Trendline — A line connecting higher lows. Acts as diagonal support. Bullish.
Wick (Shadow) — The thin lines above/below a candle body showing the highest and lowest prices reached.
Trendline trading is simple to learn, takes time to master, and rewards patience above all else.
The strategy is not complicated: identify the trend, wait for the break, enter the reversal. The complexity comes in your ability to draw accurate lines, distinguish real breakouts from fake outs, manage your risk properly, and sit on your hands when there's nothing to do.
Practice on past charts first. Draw your lines, make your decisions as if it were live, and see how they play out — across dozens of charts and markets — before putting a dollar at risk.
The traders who succeed are not the ones who find the cleverest entries. They're the ones who are patient, disciplined, and consistent. They trade the same setup the same way, every time, with proper risk management.
That's the edge. Now go build it.
Disclaimer: TrendlineFinder is an educational research and charting tool, not a financial advisor. Content is for educational purposes only and is not investment advice. Trading involves risk. © 2026 Wicked RC LLC. · Terms · Privacy · Financial Disclaimer