Types of trends 1 0

Last updated on 02/05/2022 01:44 AM
Posted ByCharles

Bull or Uptrend

Uptrends are comprised of a series of consecutive higher highs and higher lows within price action under which the price is trending higher. A consistent and stable uptrend is seen as being bullish and a buying opportunity.

Bear or Downtrend

Downtrends are made up of a series of lower highs and lower lows during which the price of the instrument trends lower. Sustained downtrends are seen as being bearish for the underlying price and are considered to be selling opportunities.

Ranging or Flat

When a market isn't trending higher or lower it's said to be flat or range bound.

In these periods neither the bulls or the bears have control of the underlying price, and the market moves sideways until one of these groups becomes dominant once more.

Here are some examples of these trends in the candlestick chart below:

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