*below*price, not above it. The stock should touch the trendline at least three times (the more touches, the more significant the trendline is. 'Significant' means it's more important when it's pierced than a line with fewer touches). Touches spaced farther apart make for a more significant line than those closer together. Modest slopes, say 30 degrees or so, tend to be lasting and more significant. Steeper slopes and the trendline will end quickly. I tested all of this, by the way, so I'm not blowing smoke. Of course, the aspect ratio (the ratio of screen height to width) will change the slope as will the scale (log or linear). Here's an interesting thought that a straight line drawn on semi log scale will appear bowed on the arithmetic scale). In this example, price pierces the trendline at C but recovers. Let's let you drive and find some trendlines in the next chart.