Trendline is located on a security price chart. The trend line, predicts the general direction in which the security is headed. This security could whether be an index, commodity or stock.
In order to determine the upward or downward direction of the trendline the lowest or highest price points are connected which the security has reached within a given time period.
Trendlines can also apply to non-securities-related data
Trendlines can also be applied to non-securities-related data that is shown in a graph. For instance, a trendline could be applied to a graph in which the birthrate in a country over time is shown. Still, most commonly trendlines are discussed in association with securities.
Straight Trendline
Neither an upward or downward direction is reflected by a straight trendline, or the one which has “leveled-off” and such trendlines has little importance to technical analysts. Sometimes a period of initial activity when a security first hits the market is followed by a straight or leveled-off trendlines.
Primary or Major Trend
When a decline or rise of at least 20% within a one year period is reflected by a trendline, then it is considered as a primary or major trend.
