Here's how trendlines can help traders catch that perfect breakout

A trendline breakout on the monthly chart asserts that the stock or index is ready to move higher, with an optimistic outlook.

A trendline indicates a broad trend, especially when considered on a bigger scale and helps in developing a trading strategy. A trendline is drawn considering the “lower lows” in terms of support and “higher highs” as resistance points to identify the next influential levels. This could take a horizontal form as well. The idea is to recognize whether the price is holding the trendline or not.

Nowadays, most day-traders use trendlines to get a sense of the trading sentiment. Basically, they consider the trendline as a support or resistance on the chart. Any breach of the same signals a major