Trend Chart:  The trendlines are plotted on daily candlesticks using a semi-log scale chart.  The candlesticks create a price pattern on the Trend Chart.  The vertical axis is the dollar price of the underlying ETF.  The horizontal axis is the month and date of the chart pattern.

Trendline:  A straight line with two anchor points.  The starting point of the trendline begins from the first anchor.  The trendline is drawn to the second anchor point and extends through the chart pattern, essentially forming a ray.  These anchor points can be adjusted such that the trendline does not cross through any price pattern.  A bold and thicker line identifies the current trendline.  An upward sloping line means the trend is ascending.  A downward sloping line means the trend is descending.

The Low:  The price low preceding the initial break of the descending trendline.  This price low usually serves as the first anchor or is near the first anchor point.  The Low is identified only when the current trendline is ascending and is drawn on the chart.

The High:  The price high preceding the initial break of the ascending trendline.  The price high usually serves as the first anchor or is near the first anchor point.  The High is identified only when the current trendline is descending and is drawn on the chart.

First Anchor:  The first point of the trendline where the trend begins. It is located at or near The Low for an ascending trend or The High for a descending trend.  The First Anchor acts like a pivot for the changing slope of the trendline when the Second Anchor changes position.

Second Anchor:  The second point of the trendline, symbolized by an ellipse.  The Second Anchor is located further along the chart pattern and is connected by a line from the first anchor.  The line extends through the Second Anchor and forms the ray of the trendline.  When the price level of the second anchor is crossed by the price pattern, a trend change event has triggered.  This trigger level is the Trend Change Date and Price listed in the MTG Sector Trend Trigger List.  When the Second Anchor is identified and placed onto the chart pattern, the trendline becomes established. 

Point #1:  The price pattern has crossed the current trendline.  Annotated on the chart by #1 on the day the candlestick broke the trendline.

Point #2:  The swing high/low after Point #1 is identified.  Point #2 is annotated on the chart by #2 and is always placed before the price pattern reaches the price level of the Second Anchor.   When the price level of Point #2 is crossed by the price pattern, a trend change event has triggered. This trigger level is the Trend Change Date and Price listed in the MTG Sector Trend Trigger List.  At times, Point #2 can only be identified after plotting Point #3.  On ascending trendlines, the price level for Point #2 is the low of the candlestick: on descending trendlines, the high of the candlestick.  

Point #3:  The swing high/low that retests the preceding highest high or lowest low, respectively, in the chart pattern of the current trendline.  Annotated on the chart pattern by #3.  Once the price pattern crosses the highest high and makes a new high in an ascending trend, the trendline is redrawn and the pre-established trendline becomes the current trendline.  Similarly, when new lows are made in a descending trend, the trendline is redrawn.

Trend Change Arrow:  Placed by the candlestick on the date when a trend change occurs.  It is placed when the price pattern crosses Point #2 and/or the Second Anchor.  An up arrow indicates an ascending trend change, and a down arrow indicates a change to a descending trend.  The day the Trend Change Arrow is identified is the day when the corresponding trendline is drawn.  This date is the same date as the Trend Signal Date in the MTG Sector Trend Trigger List.