Understanding The Trend

Our main aim at the Trend Traders Circle is to promote the simple and effective strategy of Trend Trading. Throughout the history of trading this is one for the most consistent ways of profiting within the market. 

What is a Trend?

A trend is the movement of price in a general direction in which is developing or changing. There tends to be 3 types of trends.

As trend traders our bread and butter is to identify if the market is trending or not. We have discovered the market 3 types of trends.

1. Uptrend (higher lows) 

As you can see above, price is clearly in an uptrend and this is confirmed as price continues tocreate a Higher Lows and Higher Highs. The previous low acts as support and if price breaks through this it signifies a potential change in trend.

2.  Downtrend (lower highs) 

The above chart shows price is in a downtrend as price continues to create Lower Highs and Lower Lows. The previous high acts as support and if price breaks through this it signifies a potential change in trend.

3. Sideways trends (ranging) 

The above chart shows price is in a ranging market as you can see price is consolidating between support and resistance level. It is very important to note the longer the consolidation the more aggressive the breakout.