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Market Trends

Market Trends

If you have been started to study the price action ,you may have heard of an " Market Trends" or "Type of Trends" or "Market Cycle" . Today we are going to take a small look at the each trend, along with few examples. Later we will publish the whole trend concept.

Please remember this is an educational post to help all of our members to understand concepts used in trading or investing.

Introduction

Type of Market Trend/Cycle

1) Uptrend/Advance Market (Bullish)
2) Downtrend/Declining Market (Bearish)
3) Accumulation at Top ( Range Market)
4) Distribution at Bottom (Range Market)


Few Examples Below

1) Uptrend/Advance Market (Bullish)

Usually in the Uptrend market, the price will not break the previous support level (Higher Low), It can retest but it will not break the previous support level. If support breaks then the trend will continues toward downside

During this trend phase investor/trader become more and more bullish .

snapshot

2) Downtrend/Declining Market (Bearish)

Usually in the down trend market, the price will not break the previous resistance level (Lower High), It can retest but it will not break the previous resistance level. If resistance breaks then the trend will continues toward upside

During this trend phase investor/trader become more and more bearish .

snapshot

3) Accumulation at Top ( Range Market)

It is First stage of market cycle.During this phase investor/smart investor will start accumulate the position in a bounded range. This trend phase indicates that a fight between the buyers and sellers,at the end buyers will take over the seller.

Breakout Characteristics - High Volume (Demand) and Bullish Candle

snapshot

4) Distribution at Bottom (Range Market)

It is Third stage of market cycle.During this phase investor/smart investor will start distribute the position in a bounded range. This trend phase indicates that a fight between the buyers and sellers,at the end sellers will take over the buyers.

Breakout Characteristics - High Volume (Supply) and Bearish Candle

snapshot

Thanks for reading!


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