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MARKET TRENDS

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MARKET TRENDS Now that we understand how to read the candlesticks, let ’s turn to market structure. The forex market has three segments: trend, range, and breakout. Trend A trend can go either up or down. A trend that is moving upwards is called an uptrend. A trend that is moving downwards is called a downtrend. Uptrend An uptrend is identified as prices having a series of higher highs and higher lows. The highs are the peaks that prices reach intermittently. The lows are the valleys that prices fall to before heading up again. Hence, an uptrend is formed when there is a series of highs going higher and a series of lows going higher. Downtrend A downtrend has prices moving in a series of lower highs and lower lows. Traders use a trending strategy when the market is moving in an uptrend or a downtrend. When the market is in an uptrend, we would go long. If the market is moving in a downtrend, we would go short. Trend Lines Trend lines are lines