When assessing a trend line, what is crucial for determining its reliability?

When evaluating a trend line's reliability, the number of times it is touched is critical because it indicates the trend line's strength and significance in reflecting market consensus. A trend line that has been tested multiple times and has held offers more assurance that it represents a genuine level of support or resistance, as it demonstrates that many market participants regard it as an important price level. Each touch reinforces the validity of the trend line and suggests that buyers or sellers are consistently responding to that level.

The length of the trend line, while it can provide insight into the duration of a trend, is less significant than the number of touches because a long trend line may still fail if it has not been tested enough by market movements. Similarly, although the price level at which it is drawn can matter, it is the repeated validation by market activity (touch points) that provides a clearer indication of how much trust traders place in that level. Historical performance of the asset can influence decisions but does not directly correlate with the trend line's immediate reliability. Therefore, having multiple touches on a trend line is a more direct measure of its robustness and predictive power.