Types of Market Trends

There is a saying that, 

" Trend is Trader's Best Friend".

What is this Trend ? 

So basically trend is the phase which shows whether the particular stock price is going in the upward direction or falling in the downward direction. Sometimes stock prices neither goes upward nor falls downward. Such situation can be called as sideways market where there is a very little volume generating between buyers and seller.

Trend line is a line where stock prices touches one time and then bounced back to the original direction continuing existing trend. Trend line also acts as support and resistance which we will cover in the coming blog's.

In short, there are three types of market trends:

1. Up trend ( Price goes up)
   
2. Down trend ( Price falls down)
   
3. Sideways trend (Flat Price movement)
   

Take a look at following figure:

In the above image you can clearly see that an Up trend means where a stock prices goes up and a Downtrend means where stock prices falls. A sideways trend is trend where the stock prices moves between two boundaries which also called as support and resistance.

Let's understand this on real stock charts:

1. Uptrend:

 2. Down trend :

 

3. Sideways Trend :

 That's all for now friends. 

I am making it as simple as for better understanding and less time consuming.

Because I know that all of you are quite busy in making money.

Use this blog's and try to double your money if possible.

Bye Bye....