The basic concept of the trend is very basic stuff in a variety of market-based approaches to the analysis of technical analysis. All the tools used chartist as support and resistance levels, price patterns, moving average, trendline, etc.. Everything is the same aim which is to assist in measuring the trends that are happening in the market, in order to participate in this trend. You may often hear the popular terms like “always trade in the direction of the trend”, “never buck the trend”, or “the trend is your friend”.
This short article tries to analyze and define what is meant by trends and classifying it into categories. When viewed in general, the trend is a movement in which direction the market moves. But other than that we need a more accurate definition to use in technical analysis.
You need to remember is a form of price movement is not a straight line in one direction. The market moved in a series of zigzags. Zigzag Movement formed a series of successive waves, with peaks (peak / top) and “copy” (through) is quite clear. Directions peak and throughs that will determine the market trend is going. While the Peak and Through this move up, down, or sideways (sideways). In the Direction movement that later on will tell us about the market trends.
An upward trend (uptrend) is defined as a set of sequences and through an ascending peak.
While the declining trend (downtrend) is the opposite, ie peak and through a series of diminishing, the following picture of the downtrend.
There is also a series tends to peak and throughs are called sideways sideways / ranging.
Hopefully this trend sense explanation may add insight in the world of forex.