{"format":"alysly-page/1","url":"https://alysly.com/learn/trend-and-trendlines/","json":"https://alysly.com/json/learn/trend-and-trendlines/index.json","lang":"en-US","title":"Identifying Trends: Higher Highs, Trendlines and Channels","description":"A trend is defined, not felt: higher highs and higher lows. How to build trendlines and channels, what they show, and why they bend so easily.","published":"2026-08-02T15:41:33+02:00","modified":"2026-11-01T18:26:04+01:00","alternates":[{"lang":"de-DE","url":"https://alysly.com/de/lernen/trend-und-trendlinien/","json":"https://alysly.com/json/de/lernen/trend-und-trendlinien/index.json"}],"about":"Machine-readable version of the page at url. It contains the text, tables and key figures published there, but not the interactive charts and tools.","breadcrumb":[{"name":"Investing & Trading Basics","url":"https://alysly.com/learn/"},{"name":"Level 1","url":"https://alysly.com/learn/#level-1"},{"name":"Trend, Trendline, Channel","url":"https://alysly.com/learn/trend-and-trendlines/"}],"content":[{"type":"paragraph","text":"Level 1 Reading Charts · Part 3/7"},{"type":"heading","level":1,"text":"Trend, Trendline, Channel"},{"type":"paragraph","text":"By Alexander Bock, founder and data analyst","links":[{"text":"Alexander Bock","href":"https://alysly.com/about/"}]},{"type":"paragraph","text":"Few terms in technical analysis are used as loosely as “trend”, and few are defined as rarely. Yet the definition is precise, and you can test it."},{"type":"heading","level":2,"id":"the-definition","text":"The Definition"},{"type":"paragraph","text":"An uptrend exists when each swing high sits above the previous one and each swing low does the same. A downtrend is the mirror image: lower highs, lower lows. Everything else is a sideways phase – and that is the normal state of a market, not the exception."},{"type":"image","src":"https://alysly.com/img/ta/trend-up.e45d4b21a17e1dcf5b79d82922116569767a90d8d66f8ad8ce416102f3257175.webp","alt":"Uptrend built from higher highs and higher lows with a trendline drawn under the lows"},{"type":"paragraph","text":"An uptrend is defined, not felt: (1) each swing low sits above the previous one, (2) each swing high does too. (3) The trendline connects the lows — it describes the trend, it does not hold it up."},{"type":"paragraph","text":"The value of this definition is that it can be proven wrong. “The trend is intact” is not an opinion. It is a statement that a single lower low ends. Saying “it is going up” because the price rose says nothing that could ever turn out to be false."},{"type":"heading","level":2,"id":"the-trendline","text":"The Trendline"},{"type":"paragraph","text":"A trendline connects the lows in an uptrend and the highs in a downtrend. It makes the slope visible and gives you a level whose break you can observe."},{"type":"paragraph","text":"Three points matter:"},{"type":"list","ordered":true,"items":["Any two points define a line. Only the third touch turns the line into a statement about the market instead of a statement about the two points you picked.","The line holds nothing up. It describes; it does not act. Prices do not rise because a line is there.","The scale changes it. The same prices produce lines with different slopes on a linear and on a logarithmic scale, and therefore different break points. Switching the scale until the line fits is curve fitting."]},{"type":"heading","level":2,"id":"the-channel","text":"The Channel"},{"type":"paragraph","text":"When a trend runs at a steady pace, you can draw a second line parallel to the first one on the opposite side. The space between the two lines is the channel."},{"type":"image","src":"https://alysly.com/img/ta/trend-channel.6bd630bcfa2dd34a45ff77afa4ab48c2340501377b58d12ecb57b6b5599d87ad.webp","alt":"Uptrend inside a channel formed by two parallel lines"},{"type":"paragraph","text":"When a trend runs evenly, a second line can be drawn parallel above the highs: (1) lower channel line, (2) upper channel line. (3) Channels rarely end with a bang — price simply stops filling them, as the final rally does here."},{"type":"paragraph","text":"What tells you something is not the channel itself, but whether the price still fills it. When a rally no longer reaches the upper boundary, the trend is losing strength long before the lower line breaks. This is one of the few classic chart observations that signals a change instead of confirming one."},{"type":"heading","level":2,"id":"trends-per-timeframe","text":"Trends per Timeframe"},{"type":"paragraph","text":"Trends exist in several timeframes at the same time, and they contradict each other regularly. A weekly uptrend can contain a daily downtrend, which in turn consists of hourly rallies."},{"type":"paragraph","text":"That is not a contradiction but a requirement. The timeframe you use to judge the trend has to match your intended holding period, and you have to fix it in advance. If you switch levels until the picture suits your position, you will always find confirmation. That is exactly why it is worthless."},{"type":"heading","level":2,"id":"origin-dow-theory","text":"Origin: Dow Theory"},{"type":"paragraph","text":"The idea that markets move in trends goes back to Charles Dow around 1900. So does the idea that a trend needs confirmation from the breadth of the market. Two of his core ideas still hold. First, a trend counts as intact until something disproves it. Second, a move is more credible when many instruments take part than when only a few do."},{"type":"paragraph","text":"That breadth can be measured, and not only in stocks. The Altcoin Season Index, for example, answers exactly this question for the crypto market: is the move broad, or is it only the largest asset?","links":[{"text":"Altcoin Season Index","href":"https://alysly.com/tools/altcoin-season/"}]},{"type":"heading","level":2,"id":"next","text":"Next"},{"type":"paragraph","text":"Where trends turn and pause, you usually find price areas that come up again and again. That is the subject of the next article."},{"type":"list","ordered":false,"items":[{"text":"Previous Reading Candles: Body, Wick, Color","href":"https://alysly.com/learn/reading-candles/"},{"text":"Next Support and Resistance","href":"https://alysly.com/learn/support-and-resistance/"}]},{"type":"heading","level":2,"text":"Indices"},{"type":"table","caption":"Indices, performance over the selected period","columns":["Index","1M"],"rows":[[{"text":"Dow Jones","href":"https://alysly.com/markets/indices/dow-jones/"},{"text":"+1.0%","data":{"m1":"+1.0%","m3":"-4.3%","m6":"+4.9%","ytd":"+7.6%","max":"+30.0%"}}],[{"text":"S&P 500","href":"https://alysly.com/markets/indices/sp500/"},{"text":"-2.6%","data":{"m1":"-2.6%","m3":"-2.2%","m6":"+4.2%","ytd":"+10.6%","max":"+35.6%"}}],[{"text":"MSCI World","href":"https://alysly.com/markets/indices/msci-world/"},{"text":"-2.0%","data":{"m1":"-2.0%","m3":"-2.4%","m6":"+3.7%","ytd":"+10.0%","max":"+35.0%"}}],[{"text":"MSCI ACWI","href":"https://alysly.com/markets/indices/msci-acwi/"},{"text":"-3.3%","data":{"m1":"-3.3%","m3":"-3.0%","m6":"+2.3%","ytd":"+10.2%","max":"+41.5%"}}]]},{"type":"heading","level":2,"text":"ETFs"},{"type":"table","caption":"ETFs, performance over the selected period","columns":["Fund","1M"],"rows":[[{"text":"SPDR S&P 500 ETF Trust SPY","links":[{"text":"SPDR S&P 500 ETF Trust","href":"https://alysly.com/markets/etfs/us/spy/"}]},{"text":"-2.6%","data":{"m1":"-2.6%","m3":"-2.2%","m6":"+4.2%","ytd":"+10.6%","max":"+35.6%"}}],[{"text":"Vanguard S&P 500 ETF VOO","links":[{"text":"Vanguard S&P 500 ETF","href":"https://alysly.com/markets/etfs/us/voo/"}]},{"text":"-2.6%","data":{"m1":"-2.6%","m3":"-2.2%","m6":"+4.2%","ytd":"+10.6%","max":"+34.1%"}}],[{"text":"iShares Core MSCI World UCITS ETF USD (Acc) EUNL","links":[{"text":"iShares Core MSCI World UCITS ETF USD (Acc)","href":"https://alysly.com/markets/etfs/ishares-core-msci-world-ucits-etf-usd-acc/"}]},{"text":"-2.0%","data":{"m1":"-2.0%","m3":"-2.3%","m6":"+4.3%","ytd":"+10.6%","max":"+487.5%"}}],[{"text":"Xtrackers MSCI Emerging Markets UCITS ETF 1c XMME","links":[{"text":"Xtrackers MSCI Emerging Markets UCITS ETF 1c","href":"https://alysly.com/markets/etfs/xtrackers-msci-emerging-markets-ucits-etf-1c/"}]},{"text":"-9.4%","data":{"m1":"-9.4%","m3":"-4.1%","m6":"-3.3%","ytd":"+14.0%","max":"+93.0%"}}]]},{"type":"heading","level":2,"text":"Stocks"},{"type":"table","caption":"Stocks, performance over the selected period","columns":["Stock","1M"],"rows":[[{"text":"NVIDIA Corporation NVDA","links":[{"text":"NVIDIA Corporation","href":"https://alysly.com/markets/stocks/nvidia-corporation/"},{"text":"United States","href":"https://alysly.com/markets/stocks/browse/?country=United%20States"}]},{"text":"-13.5%","data":{"m1":"-13.5%","m3":"-2.5%","m6":"+5.2%","ytd":"+10.8%","max":"+62.2%"}}],[{"text":"Apple Inc. AAPL","links":[{"text":"Apple Inc.","href":"https://alysly.com/markets/stocks/apple-inc/"},{"text":"United States","href":"https://alysly.com/markets/stocks/browse/?country=United%20States"}]},{"text":"-0.3%","data":{"m1":"-0.3%","m3":"+7.3%","m6":"+16.8%","ytd":"+22.1%","max":"+45.8%"}}],[{"text":"Tesla Inc. TSLA","links":[{"text":"Tesla Inc.","href":"https://alysly.com/markets/stocks/tesla-inc/"},{"text":"United States","href":"https://alysly.com/markets/stocks/browse/?country=United%20States"}]},{"text":"+5.2%","data":{"m1":"+5.2%","m3":"+21.7%","m6":"+2.3%","ytd":"-11.4%","max":"+65.3%"}}]]},{"type":"paragraph","text":"Data note 1","href":"#dn-1"},{"type":"heading","level":2,"text":"More Studies"},{"type":"list","ordered":false,"items":[{"text":"Jul 21, 2026 Collectibles ×5.4 for the same cards, matched-model index, Mar 2022 – Aug 2026 Is the Pokémon Card Market in a Bubble? 4,159 Sales Analyzed Prices for PSA-graded cards multiplied. Measured on the same cards they rose 438%, while the raw median shows 786% because pricier cards came up for sale later.","href":"https://alysly.com/analysis/pokemon-card-market-bubble/"},{"text":"May 19, 2026 Crypto 45.6% Bitcoin’s annualized volatility, Jul 2024 – Sep 2026 Bitcoin in Investment Portfolios: The Real Numbers Bitcoin is calmer than it was and still about three times as volatile as the stock market. It moves with stocks, not with gold.","href":"https://alysly.com/analysis/bitcoin-investment-portfolios/"},{"text":"Mar 17, 2026 Wealth €1.2m needed for €3,000 a month indefinitely at a 3% real return Living Off Your Returns: What It Really Takes The capital you need is arithmetic. The return you assume is a guess, and it can triple the answer.","href":"https://alysly.com/analysis/living-off-returns/"}]},{"type":"paragraph","text":"View all studies","href":"https://alysly.com/analysis/#studies"},{"type":"heading","level":2,"text":"Learn"},{"type":"list","ordered":false,"items":[{"text":"Support and Resistance Zones instead of lines, role reversal, round numbers – and where these areas come from.","href":"https://alysly.com/learn/support-and-resistance/"},{"text":"Volume: The Second Opinion on Price Volume confirms moves – except where it is not centrally recorded at all.","href":"https://alysly.com/learn/volume/"}]},{"type":"paragraph","text":"Course overview","href":"https://alysly.com/learn/"},{"type":"paragraph","text":"Updated Nov 1, 2026 · Content and figures checked Oct 19, 2026"},{"type":"heading","level":2,"id":"note-legend-h","text":"Data Notes"},{"type":"paragraph","text":"All calculations run automatically and are not investment advice."},{"type":"list","ordered":true,"items":[{"id":"dn-1","text":"Returns computed automatically from the price series, excluding dividends, taxes and costs."}]},{"type":"paragraph","text":"Data and methodology: Alysly · Responsible for content: Alexander Bock","links":[{"text":"Alysly","href":"https://alysly.com/methodology/"},{"text":"Alexander Bock","href":"https://alysly.com/about/"}]},{"type":"paragraph","text":"View all data notes","href":"https://alysly.com/notes/"}],"structured_data":[{"@context":"https://schema.org","@graph":[{"@type":"Organization","@id":"https://alysly.com/#org","name":"Alysly","url":"https://alysly.com/","logo":{"@type":"ImageObject","url":"https://alysly.com/img/icon-512.png","width":512,"height":512},"description":"Data-driven insights, transparent analysis and powerful tools for long-term investors.","email":"mail@alysly.com","contactPoint":{"@type":"ContactPoint","contactType":"customer support","email":"mail@alysly.com","availableLanguage":["de","en"]},"address":{"@type":"PostalAddress","addressLocality":"Haltern am See","postalCode":"45721","addressCountry":"DE"},"founder":{"@id":"https://alysly.com/#founder"},"sameAs":["https://www.linkedin.com/company/alyslycom/","https://www.youtube.com/@alyslycom","https://x.com/alyslycom"],"publishingPrinciples":"https://alysly.com/methodology/"},{"@type":"Person","@id":"https://alysly.com/#founder","name":"Alexander Bock","jobTitle":"Founder and data analyst","url":"https://alysly.com/about/","sameAs":["https://www.linkedin.com/in/abxk/"]},{"@type":"WebSite","@id":"https://alysly.com/#site","url":"https://alysly.com/","name":"Alysly","alternateName":"Alysly Investment Analysis","inLanguage":"en-US","publisher":{"@id":"https://alysly.com/#org"},"potentialAction":{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https://alysly.com/markets/stocks/browse/?q={search_term_string}"},"query-input":"required name=search_term_string"}},{"@type":"WebPage","@id":"https://alysly.com/learn/trend-and-trendlines/#webpage","url":"https://alysly.com/learn/trend-and-trendlines/","name":"Trend, Trendline, Channel – Alysly","description":"A trend is defined, not felt: higher highs and higher lows. 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Not investment advice. All data without guarantee. Financial information is analyzed and presented partly with AI assistance."}