Market Trend

There are only three ways the market can go;

• Up
• Down
• Sideways

Uptrend is price movement of a financial asset when the overall direction is upward. A formal uptrend is when each successive peak and trough is higher than the ones found earlier in the trend. For example, the peak at Point C is higher than the peak at Point A. Uptrend continue when price making new high at point E. The uptrend will be deemed broken if the next low on the chart falls below Point D.

A formal downtrend occurs when each successive peak and trough is lower than the ones found earlier in the trend. For example, the low at Point C is lower than the low at Point A. Downtrend continue when price making new low at point E. The downtrend will be deemed broken once the price closes above the high at Point D.

Sideway trend is horizontal price movement that occurs when the forces of supply and demand are nearly equal. A sideways trend is often regarded as a period of consolidation before the price continues in the direction of the previous move.