What is Trend?
- 9월 21, 2017
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What is Trend?
Trend is a basic term that is a prerequisite for technical analysis. All indicators used by technical analysts are used to analyze this trend and to determine when to trade.
Trend is the direction of the market.
The direction of these markets can be straight or curved.
Obviously, once set directions are rarely switched.
Trend analysis analyzes market price as high and low point.
The upward trend: higher and lower points are getting higher
Falling trend: gradual lowering of high and low point
If a trend is a line, it is called a trend line and trend analysis is largely defined by a trend line analysis.
This trend line is drawn by connecting two or more consecutive points in a chart.
Rising Trend Line: Draws two or more troughs in succession, also called a support line.
Decline trend line: Draw two or more high points in succession, also called resistance line.
Use of trend line
Once the trend is formed, it will continue in one direction for a long time and the period will be quite long.
Therefore, accurate trend analysis ensures high returns.
Therefore, if you analyze trends using trendlines, it is wise to keep current trends together until the trendline breaks.
A simple trend analysis can be of various lengths, intervals, angles, times, and counts of trend lines.
Investing through this analysis increases the chances of success rather than emotional dealings that are biased toward psychological conditions.
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