A Trend represents the change in prices of the stocks as per the investors expectations, there are three types of Market trends as per Technical Analysis. These three trends are the ways which came out from investors expectations who creates the actual demand and supply in the markets. Now, we will discuss about those trend and help you to know the stock market trend.
Technical analysis began to appear in Joseph de la Vega’s accounts of the Dutch markets in the 17th century.
These three types of Stock Market trends are as follows:
1. Uptrend or Bullish Trend or Rising Trend.
2. Downtrend or Bearish Trend or Falling Trend.
3. Sideways Market Trend.
1. Bullish Trend: Bullish Trend is that trend when market prices makes newer highs then it’s previous highs, So to check weather the stock is in it’s uptrend all you have to do is check out their highs and lows which will help you to detect its trend, as the new price makes new high then it’s all previous highs then it is in uptrend or bullish trend or rising trend.
In the above chart you can see the way a stock price is making new highs and the red line shows the rising trend of that stock.
2. Bearish Trend: Bearish Trend is that trend when market prices makes newer lows then it’s previous lows, So to check weather the stock is in it’s downtrend all you have to do is check out their highs and lows which will help you to detect its trend, as the new price makes new low then it’s all previous lows then it is in downtrend or bearish trend or falling trend.
In the above chart you can see the way a stock price is making new lows and the red line shows the falling trend of that stock.
3. Sideways Market Trend: Sideways Market Trend are that trend when the investors expectations are null on any stock as the demand and supply doesn’t rollover to any particular position, hence it is neither in uptrend nor the downtrend.
As illustrated in the above example you can understand this sideways market trend, it is also considered as the high risk trend where traders do not participate as it can result them in huge losses due to unknown market movements.
Hope the basics of market trends is clear to you, now you can know the trend of any stock or market and invest according to the trend to earn handsome profits.
In our next post we will discuss about various breakouts in above trend which tells us the end of the one trend and the starting of the other, thus it creates a low risk opportunities for investing . So, don’t forget to subscribe to our newsletter to stay updated whenever a new articles get posted. If you have any query then feel free to comment below.