A trend represents a consistent change in prices. Trend lines can be classified as two types, there are Ascending trend line and Descending trend line. Ascending trend line is a straight line that connects a series of reaction lows, appears at the bottom of the price pattern and is drawn up and to the right. Ascending trend line is defined by successively higher low prices, it can be thought of as a upward trending stock. This is represents that the bulls are in control and are pushing prices higher. Over this trending pattern, ascending trend line seem like a rising support level, when the price falling and reaches the trend line, the price will then begins to turn up and had not dipped below the trend line.

Descending trend line is a straight line that connects a series of rally tops, appear at the top of the price pattern and is drawn down and to the right. Descending trend line is defined by successively lower high prices, it can be thought of as a downward trending stock. This is represents that the bears are in control and are pushing prices lower. In this trending pattern, descending trend line seem like a falling resistance level, when the price rising and reaches the trend line, the price will then begins to turn down and had not penetrated above the trend line.

Trading signals
1.        In ascending trend line, the bottoms that meet the trend line could represent bottoms of trends, and this is buying signal.

2.        In descending trend line, the rally tops that meet the trend line could represent tops of trends, and this is selling signal.

3.        A penetration from an ascending trend line must be confirmed by one close below the trend line. Conversely, a penetration from a descending trend line should be confirmed by one close above the trend line. Important, volume is the key to determining the significance of the penetration of a trend. Volume increased when the trend line was penetrated. This is an important confirmation that the previous trend is no longer intact.

4.        After confirmation, penetrations are likely to be followed by a period of consolidation. It is relatively rare for trends to suddenly reverse direction.

5.        Once a trend line is decisively penetrated, it normally changes its role from one of support to one of resistance for an ascending trend line or resistance to support for a descending trend line.

Examples of Ascending trend Line: 

Unisem [5005]

Misc [3816]

Airb [8516]

Examples of Descending trend Line:

Aem [7146]

Drbhcom [1619]

Dialog [7277]

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