Trending markets - what are those?

Right now I wanted to talk about markets.

As I already stated, this week and maybe a little time over it we are going to talk about market and behavior of traders in different kind of market.

Look at the picture. even though we see that the price was jumping up and down, the overall trend was going up. That is an up trending market.

Lets discuss!

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.

Yes, we cannot escape oscillators and different indicators ever. Remember – as soon as you try and escape from them, they are going to find you and make you tell everything you know about them by heart. So it is better to always remember ‘bout them or better yet use them. They are small and not really that difficult, but so nifty!

So, in the following lessons we are going to talk about oscillators and indicators that are going with trending market like peanut butter and jelly on a warm toast – perfectly.