Uptrend :- A Trending market is where prices move strongly in one general direction for a specific period of time.
In a Market trend, prices rallies either up or down.
In this example , the market is trending up , so buyers are in control of the market .
If you can identify the market structure, you will easily know what you should do .like in this example
we know that buyers are stronger than sellers , so we have to folllow buyers,which means that the best
trading decision should be to find buying opportunities in this
A downtrend refers to the price action of a market that moves lower in price as it fluctuates over time.
While the price may move intermittently higher or lower, downtrends are characterized by lower peaks and lower troughs over time.
Identifying a downtrend helps us know what to do next, because during a donwtrend market, sellers are in control , we should always find opportunities that are in line with the donwtrend.
The best trading oppotunities durind a downtrend market are always located at the support that becomes resistance, because once
prices get rejected from this level, this is an indication of the end of the retracement move , and the beginning of a new impulsive move .
One of the first things any trader when trading in a ranging market should be thinking of before trying to trade a ranging market is
to mark support and resistance levels.
Support and resistance are the best areas where you can plan your trades during a ranging market.as you can see in the illustration that
i’am sharing with you , once price approches the support or resistance level , the market gets rejected , because most professional
traders wait for price to reach these areas.
During an uptrend , buyers are in control , so you have to focus on areas where buyers could take future entries .
The best trading areas during an uptrending market are the ones that are located at the resistance that becomes support.