What Are The Different Types of Trends?

10 May 2023

Trend trading strategies play a vital role in every trader’s life because it helps them identify early trades to exit from the market when there is a reverse trend. Typically, there are three different types of trends given below:

1. Uptrend
2. Downtrend
3. Sideways trend

Uptrend
An uptrend is formed when a price is rising in value. Usually, a bullish trend has a very common structure. The price keeps setting new higher highs, simultaneously setting new higher lows.

Downtrend
A trader can see a downtrend when the price is falling in value.
Usually, a bearish trend has a very common structure. The price keeps setting new lower lows, simultaneously setting new lower highs.

Sideways trend

The sideways trend is formed when the market remains static, i.e., the price neither sets new lows or new highs.

Trend identification is the essential part of any trading strategy. Learn to identify the market trend with objective and reliable rules.


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