Trend Lines
Trend Lines help the chartist to determine short term support and resistance within a longer term trend.
The chart below shows how trend lines can be drawn over a chart to give an indication of support levels. This can then be used as an indicator for a reversal signal. If the trend line is broken, we are likely to believe that the longer term trend has changed.
Sourced by Web IRESS Technology 2010
Channels
Chartists also use channels as a technical indicator to monitor greater trends. This way we can analyse not only support, but resistance levels as well. This gives us an indication of the likely price action, over the short term, within a longer term trend.
The chart below shows an example of how to draw trend lines over a chart to identify a channel.
Sourced IRESS Technology 2010