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what is the trending market !

 

what is the trending market !

A trending market is simply a market that is consistently making Higher Lows (HLs) and Higher Highs (HHs), or a market that is doing the inverse – moving down and making Lower Highs (LHs) and Lower Lows (LLs). See below how the Dow Jones was in a nice bullish uptrend.

up trend

As you can see, the best time to enter a bull market is when it dips down and forms a higher low.
This is called a ‘pullback’, or retracement, and it is here we look for signals to go long. The inverse is true for bearish trending markets, look for sell signals at lower highs. The chart below is a nice bear market on the USD/JPY

down trend

 

Edited by Mr Alex Michel from UK.  

                                                   

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