A Trendline Touch is recognized by pivot points. Lines drawn from each pivot point to every other pivot point are examined for total number of touchpoints.
The high price is used when testing upper trendlines and the low price is used when testing lower trendlines. Touchpoints are areas where regularprice bars and/or pivot points are within a minimum acceptable distance of the trendline. Once all of the valid trendlines have been determined, they are recognized by the slope of the line. Trendlines are displayed as colored lines of various slopes on the chart.
Touchpoints are important in determining the strength of trendline. A Touchpoint is any point where price touches, but does not exceed, a consistant trendline. Given two trendlines of equal length, the trendline that has the greater number of touchpoints would typically be considered the stronger of the two. There should be at least two touchpoints at minor peaks on the top and two minor valleys on the bottom with little white space in between.