Understanding the current market trends is essential for maintaining a level-headed trading.
Trading trends could go three ways: Upward Trend Line, Downward Trend Line or Horizontal Trend Line.
Upward Trend Line - A straight line that rises from left to right and passes under at least the two most recent trough points. In an Upward Trend Line each trough point is higher than its predecessor.
Downward Trend Line - A straight line that descends from left to right and passes above at least the two most recent peak points. In a Downward Trend Line, each peak point is lower than its predecessor.
If no Upward or Downward Trend was identified than one should refer to the current trend as a Horizontal Trend..
No comments:
Post a Comment