Trend lines are straight lines drawn through key lows (in an uptrend) or highs (in a downtrend) on the chart. Trend lines can also serve as support levels in an uptrend and resistance levels in a downtrend. The price can bounce off these lines, creating opportunities to enter a trade on a pullback. A trend breaks when its line is broken. But here it is important to wait for a retest of its broken side and a rebound in the direction of the breakout, which is often a good confirmation of a change in trend direction.
