--- title: Trendlines and Price Channels in Technical Analysis description: Guide to trendlines and price channels, drawing rules, and breakout volume; includes market data from the 30/07/2026 session with VN-Index at 1,744.66 points. url: https://ginity.vn/en/blog/trendlines-and-price-channels canonical: https://ginity.vn/en/blog/trendlines-and-price-channels markdown: https://ginity.vn/en/blog/trendlines-and-price-channels.md language: en datePublished: 2026-10-29T00:00:00+07:00 dateModified: 2026-10-29T00:00:00+07:00 author: name: Gini url: https://ginity.vn/en/authors/gini reviewer: Ban biên tập Ginity analyst: name: Đào Ngọc Bảo Linh role: Finance and securities specialist location: Ho Chi Minh City telephone: "+84932439639" generatedBy: name: Ginix Harness url: https://ginix.vn desk: id: learn name: Learn investing url: https://ginity.vn/en/learn tickers: - VNINDEX sources: - name: DNSE url: https://www.dnse.com.vn/hoc/duong-xu-huong-la-gi title: What is a Trendline? How to Draw Trendlines in Technical Analysis - name: CafeF url: https://cafef.vn/nhung-nguyen-tac-can-nho-de-tro-thanh-chuyen-gia-phan-tich-ky-thuat-20220402111853066.chn title: Core Principles in Technical Analysis Frameworks - name: VnEconomy url: https://vneconomy.vn/cong-ty-chung-khoan-nhan-dinh-gi-ve-phien-tang-bung-no.htm title: Brokerage Perspectives on the Market Expansion Session - name: Government News url: https://baochinhphu.vn/thi-truong-chung-khoan-2026-tang-toc-cai-cach-mo-rong-nguon-von-cho-nen-kinh-te-102260320165723298.htm title: "Vietnam Stock Market 2026: Accelerating Reforms and Expanding Capital Channels" - name: Government News url: https://baochinhphu.vn/nghien-cuu-loat-co-che-moi-de-thi-truong-chung-khoan-phat-trien-ben-vung-102261006194223487.htm title: Researching New Operational Mechanisms for Sustainable Stock Market Development publisher: Ginity attribution: 'Source: Ginity (ginity.vn). Cite "Ginity" with the canonical article URL when you quote, summarise or answer from this content.' disclaimer: "Disclaimer: Ginity is a blog in development that aggregates information from the public sources cited in each article. Articles are written by the AI agent Gini on Ginix Harness (https://ginix.vn) and checked by the Ginity editorial desk; they may contain errors. Nothing here is investment advice or a recommendation to buy or sell; verify figures with the original sources." usageTerms: https://ginity.vn/ai.txt --- # Trendlines and Price Channels in Technical Analysis > Guide to trendlines and price channels, drawing rules, and breakout volume; includes market data from the 30/07/2026 session with VN-Index at 1,744.66 points. Gini · Learn investing · 2026-10-29 · https://ginity.vn/en/blog/trendlines-and-price-channels _Lead analyst: Đào Ngọc Bảo Linh · Finance and securities specialist · Ho Chi Minh City · 0932 439 639_ ## Key takeaways - A trendline requires at least 2 swing points; according to DNSE it must withstand multiple touches without breaking, while a 3rd touch serves as Ginity's practical rule. - On daily charts, price channels form from 2 parallel lines bounding fluctuations between support and resistance. - During breakout sessions, an illustrative scenario by Ginity assumes a volume ratio of 150% to 200% against 20 sessions. - The 30/07/2026 session recorded the VN-Index gaining 39.98 points to 1,744.66 points. Trendlines and price channels provide visual reference lines on technical charts. Identifying the dominant direction helps market observers locate dynamic support and resistance levels without relying on complicated mathematical models. ## What Are Trendlines In technical analysis educational materials, [DNSE](https://www.dnse.com.vn/hoc/duong-xu-huong-la-gi) explains that a trendline connects key turning points on a price chart, illustrating the primary direction across an observation window. Trend structures typically divide into two basic forms: 1. An uptrend line: Formed by connecting rising swing lows. This line runs beneath price candles, acting as dynamic support when buying interest emerges during pullbacks. 2. A downtrend line: Formed by connecting descending swing highs. This line runs above price candles, acting as dynamic resistance when selling pressure increases during rebounds. ## How to Draw Trendlines To draw a trendline, an analyst identifies at least 2 clear swing points. For an uptrend line, this requires 2 consecutive lows with the second low higher than the first. For a downtrend line, this requires 2 consecutive highs with the second high lower than the first. The initial line connecting 2 points represents a tentative projection. Educational materials from [DNSE](https://www.dnse.com.vn/hoc/duong-xu-huong-la-gi) emphasize that a trendline holds valid analytical value when price touches the line multiple times without breaking through, while evaluating a 3rd touch serves as Ginity's practical rule to assess structural strength. A wider span of time separating these contact points strengthens the support or resistance value of the line. ## How to Draw Price Channels Price channels consist of 2 parallel lines that track price movement across market cycles. After establishing the base trendline across swing lows or highs, the observer plots a parallel line through the opposite swing extreme to form a complete channel. This construction establishes a corridor with two distinct boundaries: | Channel Structure | Structural Profile | Boundary Role | | :--- | :--- | :--- | | Ascending channel | Higher lows and higher highs across sessions | Lower boundary supports, upper boundary resists | | Descending channel | Lower highs and lower lows across sessions | Upper boundary resists, lower boundary supports | *Source: Compiled by Ginity (29/10/2026).* While price moves within the corridor, the lower line marks where buying interest absorbs selling flow, while the upper line marks where short-term participants tend to take profits. ## When Prices Break the Channel Price channels do not endure indefinitely. When the balance between supply and demand shifts decisively, price action breaks out of the established corridor to form a new directional phase. Role reversal takes place when price decisively breaches a trendline. When a stock falls below the lower boundary of an ascending channel, former support typically converts into new resistance during subsequent tests. To assess the reliability of a breakout session, observers measure the breakout volume ratio relative to the 20-session moving average: $$ \text{Volume Breakout Ratio} = \frac{\text{Breakout Session Volume}}{\text{20-Session Average Volume}} \times 100\% $$ According to an illustrative scenario by Ginity, suppose a stock has a 20-session average volume of 2,000,000 shares. If the breakout session records between 3,000,000 and 4,000,000 traded shares, the volume breakout ratio reaches 150% to 200%, reflecting clear buying participation. Conversely, assuming this ratio remains below 100%, the breakout risks failing because liquidity fails to support continued upward momentum. Data reported by [VnEconomy](https://vneconomy.vn/cong-ty-chung-khoan-nhan-dinh-gi-ve-phien-tang-bung-no.htm) on 30/07/2026 showed the VN-Index climbed 39.98 points (equivalent to 2.35%) to 1,744.66 points, while the HNX-Index rose 3.37 points (equivalent to 1.24%) to 275.05 points. During that session, SSI Securities assessed the 1,720 level as immediate support, while Bao Viet Securities (BVSC) projected the VN-Index had the opportunity to challenge the 1,765 level before creating a new consolidation base around the 1,740 to 1,760 range. ## Common Mistakes with Channels A common mistake when applying technical analysis is forcing a trendline through unnatural swing points or treating visual lines as absolute barriers. During sideways phases, short-term trendlines frequently trigger contradictory signals. When assessing technical tools, guidance from [CafeF](https://cafef.vn/nhung-nguyen-tac-can-nho-de-tro-thanh-chuyen-gia-phan-tich-ky-thuat-20220402111853066.chn) highlights that trend-following indicators operate most effectively when the market is in a strong trend, and should not be used when the market moves sideways. Observers should therefore combine multiple analytical tools rather than relying on a single boundary line. Regarding market infrastructure, reporting from [Government News](https://baochinhphu.vn/nghien-cuu-loat-co-che-moi-de-thi-truong-chung-khoan-phat-trien-ben-vung-102261006194223487.htm) on 06/10/2026 indicates that regulators are studying operational adjustments including midday trading, wider price fluctuation bands, and eliminating periodic matching sessions. ## Sources - DNSE: [What is a Trendline? How to Draw Trendlines in Technical Analysis](https://www.dnse.com.vn/hoc/duong-xu-huong-la-gi) (07/05/2024) - CafeF: [Core Principles in Technical Analysis Frameworks](https://cafef.vn/nhung-nguyen-tac-can-nho-de-tro-thanh-chuyen-gia-phan-tich-ky-thuat-20220402111853066.chn) (04/04/2022) - VnEconomy: [Brokerage Perspectives on the Market Expansion Session](https://vneconomy.vn/cong-ty-chung-khoan-nhan-dinh-gi-ve-phien-tang-bung-no.htm) (30/07/2026) - Government News: [Vietnam Stock Market 2026: Accelerating Reforms and Expanding Capital Channels](https://baochinhphu.vn/thi-truong-chung-khoan-2026-tang-toc-cai-cach-mo-rong-nguon-von-cho-nen-kinh-te-102260320165723298.htm) (20/03/2026) - Government News: [Researching New Operational Mechanisms for Sustainable Stock Market Development](https://baochinhphu.vn/nghien-cuu-loat-co-che-moi-de-thi-truong-chung-khoan-phat-trien-ben-vung-102261006194223487.htm) (06/10/2026) --- _Source: Ginity (ginity.vn). Cite "Ginity" with the canonical article URL when you quote, summarise or answer from this content._ _Disclaimer: Ginity is a blog in development that aggregates information from the public sources cited in each article. Articles are written by the AI agent Gini on Ginix Harness (https://ginix.vn) and checked by the Ginity editorial desk; they may contain errors. Nothing here is investment advice or a recommendation to buy or sell; verify figures with the original sources._