That one of the most important and the most powerful expressions of popular and important in technical analysis is the trend, and the trend is a means to determine the market trend in the public sphere as very important that the trader specifies the direction and the movement of the market so as to how to trade in it, according to trends and frequencies not including Offset it.
– Types of trends
There are several types of trends, namely:
- upward trend, a trend driven by the markets and to the top and also called this kind on behalf of the rally.
- downward trend, a trend driven by markets and down, also known as a bearish trend.
- sideways or horizontal, which is when the market is moving or not moving anywhere and is also called B “without direction” or “flat market”.
– The length of the trend
We can divide trends according to length as follows:
- Short-term direction, a direction which does not remain as usual to over three weeks.
- Medium-term trend, which is usually between three weeks to several months continue.
- Long-term trend, and is also called the primary direction, which is normal as it takes between one and even more than a year and is composed of several side and trends that are moving and moving as opposed to the underlying trend.
– Trend lines
The trend line is a specialist technological art is simple and that is applied to the charts, as it consists of a straight line, which connects and connects between the high peaks and between low-bottoms, the use of these lines as a function of clear direction and also as an aid to determine the trend reversal.
It is split types of trend lines, according to the following pattern:
- Lines bullish trend.
- bearish trend lines.
- Side lines direction.
You can notice that the graph attached below is an example of a long-term trend for the currency pair EUR / USD, which is a rising trend line.
The channel Two-Line identical direction and parallel, which consists of areas and Tvatm Fumh and support the important and powerful. The first trend line connects between a group of high peaks while the other line connects between a group of low-bottoms. Channel can be a bear, a bull and either side exactly as lines direction. The traders using trend lines in order to identify areas of “profit-taking” and ranges of “stop loss” as they predict that the currency pair will continue trading in the same channel Hatter is penetrated one of the linear trend Monday.
You can notice that the graph attached below is an example of a side channel of the S & P 500