The general direction of a market or of the price of an asset (from investopedia).
There are three type of trends:
- Uptrend (see fig. 8)
- Downtrend (see fig. 9)
- Sideways or trendless (see fig. 10)
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| fig. 8 |
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| fig. 9 |
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| fig. 10 |
- uptrend: connect the low to high, high to higher low, higher low to higher high, higher high to higher low and so on (see fig. 11A)
- downtrend: connect the low to high, high to lower low, lower low to lower high, lower high to lower low and so on (see fig. 11B)
- sideways / trendless: connect the low to high, high to equal low, equal low to equal high (see fig. 11C)
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| fig. 11A, 11B, 11C |
