Trendlines are an elemental aspect of technical analysis. As I’m sure we’re all aware, the idea here is that we may identify a trend - and attach a (non-horizontal) line to show the rate at which price is increasing or decreasing. For example, consider the following chart:
I’d say that this is clearly a down trend, since all consecutive peaks are lower than the last. However, there is no linear trendlines that accurately fits this trend. As such, one would probably end up redrawing their trendline for this trend many times as new price data appears.
I see no logical reason why price trend should have linear gradients. As such, I’m curious as to why we draw linear trendlines? Furthermore, I’m interested in why we think that a trendline break may signify anything? Surely, if price keeps making lower peaks - the trend is still bearish, regardless of whether a subjectively drawn straight line is broken?