{"id":19052,"date":"2019-09-27T10:20:56","date_gmt":"2019-09-27T09:20:56","guid":{"rendered":"https:\/\/traders-paradise.com\/?p=19052"},"modified":"2020-07-07T15:45:09","modified_gmt":"2020-07-07T14:45:09","slug":"how-to-identify-market-trends","status":"publish","type":"post","link":"https:\/\/traders-paradise.com\/magazine\/2019\/09\/how-to-identify-market-trends\/","title":{"rendered":"How to Identify Market Trends"},"content":{"rendered":"

6 min read<\/em><\/p>\n

By Guy Avtalyon<\/p>\n

Being able to identify stock market trends is a crucial part of your investments and trading. How many times have you heard that the market is trending? Numerous. But did you have the ability to recognize the signs before the market move in some direction?<\/span><\/p>\n

So, when we say the market is trending we are talking about market moving in one of two directions. When the market is moving up it is Bullish, but when it moves down it is a Bearish trend. There is some misunderstanding toward trends. Let’s say this way, never fight against market trends. That will take you to losses. Rather catch the flow to manage your risk-reward.<\/span><\/p>\n

It is so important to have ways to identify market trends. Markets can also move within a \u2018range\u2019, and they don’t need to be recognized as Bullish or Bearish, rather they are falling <\/span>sideways<\/span>. So, you can see we have three possible market directions. Ability to recognize when a market is probably moving out of a trend will also help you.\u00a0<\/span><\/p>\n

Assume you are trading while the market is in a Bullish trend. So your focus would be on buying the position. But suddenly the market starts to change and your edge disappears.\u00a0<\/span><\/p>\n

It is absolutely scary when you are looking at those changes at your charts. But there are several things that will provide you to know how to identify market trends.<\/span><\/p>\n

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