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trends
stockmarket.peperonity.net

Catching the TREND all that matters.

Stock market trends

What is a Trend?

Trend is a type of technical analysis which is very easy to find and is popular because of the same reason. A trend is nothing but a series of price movement in one direction. There are a number of tools used to find the trend, one of them is trend lines. A trend line is a straight line which passes across two or more points in the same direction and which can be extended to act as a line of support or resistance in future.
Types of Trends.
According to the direction of the trend, there are three types of trends:
1.Uptrend
2.Downtrend
3.Sideways
A trend lines is considered reliable only if it has minimum of 2 points, more points indicates the more strength of the trend lines.
How to draw a trend Line?

In order to draw a trend lines, connect two higher lows or ascending lows in case of an uptrend. In case of a downtrend simple connect two lower highs or descending highs. In case of sideways connect two equal lows.
Duration of Trend?

Depending on the time period a trend takes to formed, they are further categorized into following types.
1. Long term trends: Also known as major trend.
2. Intermediate trends: Also known as minor trend.
3. Short term trends: Also known as micro trend.

Importance of Trend?
Trends helps to find the direction of the market which is the sole purpose of a trader. Trend line helps to find support and resistance, therefore gives an opportunity to trader to buy or exit a number of times resulting in increase in profit.

Incorporating other indicators like Volume, Candlestick, MACD, etc. with trend lines also gives early signals to traders when the trend lines is penetrating or the possible breakout.

Now we have understood what trend is. Now its time to look into other trends pattern and how they are interpreted in real time. Please follow these links to find about different types of trend. We have explained them in details and provided you with ample real life examples of them.


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