Auto Trend Lines is a VTL Client-Side indicator to plot trend lines. It detects the peaks and troughs in the chart and then plot trend lines joining recent peaks for down trend line and the recent troughs for uptrend line. Trendlines are usually considered as strong support resistance levels. Traders can open buy positions when the down trend line is broken, and price remains above the trend line. Sell position can be opened when the uptrend line is broken, and price remains below the trend line.
The Auto Trend Lines VTL can be used to identify geometrical chart patterns like Triangles and Flags. Symmetrical Triangles, Ascending triangles and descending triangles can be easily identified. Up and down flags can be identified with help of this indicator. It can be used to identify many other chart patterns like trend channels, pennants etc.