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Now, when we look at the chart, we're not just looking at the price; we are looking at the overall trend. Is the price going up (an uptrend), down (a downtrend), or sideways (a consolidation phase)? Trendlines, drawn by connecting a series of highs or lows, are crucial tools. They give us a visual understanding of the trend. For instance, if the price keeps making higher highs and higher lows, we're in an uptrend, which often signals a bullish market. Conversely, lower highs and lower lows indicate a downtrend, a bearish market signal.
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