Identifying the Trends

A trend simply represents a general direction of a market.

There is a physical law stating that an object in commotion tends to continue juice that motion until some extreme force causes it to remodel direction. Price trends are no different. A strong price trend will continue in it’s prevailing direction unless there is a price reversal indication, that will show up up in your mechanical analysis – or equable in fundamental analysis.


There are 3 phases of material trends that you should equate aware of in your analysis; Accumulation, public proof further distribution.


The accumulation phase is the first part of the trend which represents those who are well informed that will buy or sell.


Meaning simply that if the actually far-sighted or fresh seasoned, brainy traders recognize that a current downward trend is accession to an end, then they would buy – also vice versa.


The public patience is essentially when the bodies would set the same and follow suit.


The third and coming phase – the assortment phase – occurs when everyone else catches on also public sense increases even further. evident is at this fleck that the well informed, seasoned investors who accumulated during the accumulation phase would begin to sell, or vice versa.