Price Trend Channels
A trend is formed when prices in a rising pattern forms a series of higher lows. In a classic up trend, the price forms both higher highs and higher low prices.
The trend line is drawn through at least two, preferably three ascending low prices. The importance of trend is in relation to the price action that occurs after the trend line has been violated.
A long term trend line that has been broken will typically indicate that the market has reversed course.