The Pattern Bible : 2. The trends

in #bitcoin7 years ago

Hi everyone,

Today I would like to introduce you to a new chapter in trading : the trends.

There is 3 different trends in charts : Uptrend, Downtrend and Range.

I. Uptrends

Uptrend are trend that are going ... up ! How to see if we are in uptrend? The price is making higher high and higher lows.

II. Downtrend

The same way : it is a trend that is going down. How to see it? The price is making lower highs and lower lows.

III. Range

When the price is in a range, the price is blocked between two price and don't go higher or lower.

Now, how to see when the trend is reversing?

"A trend only reverse once"

The downtrend is reversing when the price stop doing lower lows and higher lows and start doing higher highs and higher lows.
On this chart you can see a full cycle with downtrend - range - uptrend :

Thanks for reading!

Feel free to ask me questions about this !

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