Hello, my cleaver friends!๐๐ป It's time to self-educate! ๐ช๐ปLet's talk about ๐ Trend / Flat ๐
๐ฅTrend is the direction of market movement.๐ฅ
By tracking dynamics of โ๐ปups and ๐๐ปdowns, we can understand what is the trend of price movement and how long it's going to change.๐ง
Price moves in one direction - is the basis for trend analysis.
There are three 3๏ธโฃ types of trend :
๐ค๐ปBullish trend - prices are moving up.๐
The main condition for a bull trend is ascending movement more than descending movement (the definition of "bullish" arose by analogy with a bull raising the price on its horns)
๐ค๐ปBearish trend - prices are moving down.๐ป
The basic condition of a bearish trend is a descending movement than an ascending movement (a bear, as it were, crushes the price under itself, leaning on it from top to bottom with its entire body - hence the โbearish trendโ)
๐ค๐ปSideway - there is no definite direction of price movement either up or down.
Such movement is called flat; a long flat is a harbinger of a price storm in the market - a strong price movement in one direction or another.
As a rule, prices do not move linearly up or down. However, in a bullish trend, prices are rising more and faster than falling. The same thing, exactly the opposite, happens with a bearish trend. But bearish movements are always more rapid and powerful. This is usually associated with panic sales in the markets.
๐ฅBasic rules of price movement in trends:๐ฅ
๐ค๐ปThe golden rule!!! The current trend is more likely will continue, than change direction ; ๐ค๐ปThe trend will move in the same direction until it weakens.
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