Trend: How to Know the Market Direction
What is the trend?
It is the general direction of price movement over a specific period of time.
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🔵 1) Uptrend
It consists of:
• Higher Highs
• Higher Lows
📌 What does it mean?
Buyers are in control — buying opportunities are stronger than selling.
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🔴 2) Downtrend
It consists of:
• Lower Highs
• Lower Lows
📌 What does it mean?
Sellers are in control — selling/shorting opportunities are the best.
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🟣 3) Sideways
The price moves within a narrow range between support and resistance.
📌 What does it mean?
The market is waiting for a price breakout — the best area to build strong trades.
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🛠️ How to draw the trend line?
• Draw the line on the lows in the uptrend
• And on the highs in the downtrend
• The more the price touches the line = the stronger the trend
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🎯 Golden Rule:
Do not enter against the trend unless there is a very strong pattern signal and a confirmed close.
