The market's trend

At first sight of every price chart, it is evident that the price market fluctuates, goes up and down, and makes a zig-zag pattern. The general direction of the market and price graduation is the market trend. 

Before learning how to recognize the trend in the price chart, It is requisite to get familiar with the types of trends in the market

  1. An uptrend is when the market has successive higher highs (higher peaks) and higher lows, or in other words, it happens when the share price is fluctuating in an increasing direction.
  2. A downtrend is when the market has successive lower lows and lower highs; the price share fluctuates in a decreasing direction.
  3. Sideway trend is the market's oscillation movement among parallel horizontal lines like
support and resistance, so there is no sign of sharp risen and fall. 

These three types of trends are shown in the following chart. Green circles indicate higher lows of the uptrend part, and higher highs are also rounded in blue. In the downtrend part, the lower lows are indicated by yellow circles and lower highs with red ones. 


In technical analysis, uptrend and downtrend are also named "Bullish markets" and "Bearish markets". The bullish market refers to an uptrend, increasing-price progression where implant traders expect the market. The bearish market is the opposite; it is used when the market has a downtrend and traders look pessimistically at the further price. Traders use various techniques to identify the trending market directions, such as trendlines and patterns.

GBPUSD- Daily chart (2009-2010)