A trend is what popular at certain time in the point. A trend is general way into which something is developing, changing or turning towards. The term trend also means style or fad. A trend simply reflects what appears to be going around the world at any given time. A trend does not reflect pop culture, fashion and entertainment. A trend can be any area and any place. Some trends are fabulous, some are entertaining, and some are appalling. You can assure there will be always a new trend however long they last.
How to trend work:
Using many forms of technical analysis including price action, trendlines traders can identify a trend. An uptrend is noticeable by complete increase in price. There will always be fluctuation so nobody move straight for long time. To be considering an uptrend the complete direction need to be greater in time. For swing high recent swing lows goes same and should be above prior swing lows. The uptrend could be losing haze or repeating into a downtrend once this structure start to break down. Downtrend is creating for lower swing high and lower swing low. Trader may accept it will continue while trend is end there will be proof that point to the contrary. Such proof could be include the price breaking below a trendlines, lower swing high or low, or bearish turning technical indicator. Trader focous on purchasing while trend is up and trying to profit from continue price rise. Trader trying to minimize loses and profit from the price decline and trader focous more on shorting or marketing when the trend go down. Many downtrends do back at the same price me point, more trader begin to see as step into buy and bargain. To the rise of uptrend again this could lead
Trendlines is a common way to recognize trend. It connects a sequence of low downtrend or high uptrend. For future price movements creating a support level up trend connect a series of higher lows. Creating a resistance level for future price movements downtrend connect a series of lower highs .This trend line show the complete way of the trend in the addition to resistance and support.
Type of trends:
Uptrend trend happen when the price of stock move upward or higher line. Uptrend trend make higher swing lows. It also makes higher swing lows. When the complete direction is upward an uptrend describes the price movement of monetary asset. Each trough and successive peak is higher than the ones found previous in the trend.
Downtrend refers as when the price of stock falls. In downtrend the price makes lower swing high. It also makes lower swing low. A downtrend offers trader with an advantage of profit from dropping asset price. Downtrend is most identifiable by prices creating lower highs and lower lows.
3. Sideways trend:
When the market remains the static sideways trend is formed. A sideways trend show little price change or movements. The price of an asset neither fall nor rise. There is an uncertainty between sellers and buyers. The price moves within a parallel line or station.
Advantage of trend:
Trend analysis can proposal numerous advantages for trader and investor. It is a powerful tool for trader and investor and it can help to identify oppourunities for minimizes risk, selling or buying securities, enhance protofolio performance, improve desicion making.
Disadvantage of trend:
Trend analysis can have disadvantage for making investment decision. If the data is inaccurate, incomplete the analysis may be inaccurate or misleading. The trend can also mean that it can provide limited viewpoint on the future.