The Trend of Market
The price has a zig-zag pattern of fluctuation on the price chart. The general direction of price graduation is named the "Trend of market". Type of Market
- Bullish Market: It refers to an uptrend, increasing-price progression where implant traders expect growth in market.
- Bearish Market: It refers to a downtrend, decreasing-price progression and traders look pessimistically at the further price.
Types of Trends in The Market
- Uptrend (the price fluctuates in an increasing direction)
- Downtrend (the price fluctuates in decreasing direction)
- Sideway trend ( when the price fluctuates among parallel support and resistance)
In technical analysis, identifying trends is a skill and can be easily reached by drawing trendlines.
To Draw an Uptrend Line:
- Find at least three sequence swing low points on the price chart.
- Choose from the toolbar and draw the line through the points.
To Draw a Downtrend Line:
- Find at least three sequence swing high points on the price chart.
- Choose from the toolbar and draw the line through the points.
Price channel
A Price Channel has been configured when both the lower and upper trendline is drowned and price swings between two trendlines. While the upper trendline is equivalent to resistance, and the lower trendline acts as a support level.
The Price Channel ...
- indicates ideal entry or exit points on the chart (the potential trading opportunity).
- efficiently identifies the breakout when security price breaches either the upper or lower boundaries
Types Of Price Channel
- Descending Channel (Bearish Channel)
- Ascending Channel (Bullish Channel)
- Horizontal Channel
To Draw Price Channel:
- Draw the main trendline
- Draw the second trendline