Right now I wanted to talk about markets.
Trending market is the market that generally moves in one direction. Sure, short term graph can display different movements, but long-term picture is showing one big movement in a certain direction. Trending market can be of two kinds – uptrend and down trend.
There is an uptrend – higher highs and higher lows and downtrend – lower highs and lower lows. Even though this seems obvious, it was still worth mentioning. A lot of beginners can still be little hazed about all of the different market conditions and that is why I find it important that we cover all of the possible details of the topic. After all, knowing your market conditions is very important. Why?
It is important to see which direction the market is moving in as we are going to base our whole strategy on trends. Next we are going to see how to work with indicators and oscillators in a trending market.