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Day 8 - Trend

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Day 8 - Trend

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Directional Identification

(Price Trend)
• Importance of Trends
• How to Identify Trends?
• Trend Series
• Trend Lines & Channels Module - IV
• Moving Average
• Super Trend Direction
• Outcome of Trend Breakout Identification
• How to Draw correct /Trends
Trend Lines?
• How to Identify Channels?
Equidistant Channel Line
• Importance of Trends Identification of
• How to Identify Trends?
• Trend Series Directional Trend
• Trend Lines & Channels
Presented by: Rohan Sharma
Duration - 1 Hours (CMT - USA, CFP, CPM)
Trend

• A trend is the overall direction of a market or an


asset's price.
• The purpose of trends analysis is to see what's likely
to happen before it happens so you can avoid
potential dangers and take advantage of potential
opportunities.
• Trend analysis is a technique used in technical
analysis that attempts to predict future stock price
movements based on recently observed trend data.
How Does Investor Psychology Impact Trends?

Aggressiveness or
Power of the
anxiousness of
buyers or sellers
buyers and sellers

Emotions of fear or
greed propelling Broad expectations
their action
Trend

Uptrend Down Trend

Sideways/
Consolidation
Trend
Up Trend
Up Trend

• Uptrend (Series of Higher Top & Higher Bottom)

• Higher Bottom are dull/ cool off in nature

• Higher Bottoms are form with low volumes & higher


top are with high volumes

• Action : Buy on Dips (Nearby Higher Bottom)


Down Trend
Down Trend

• Downtrend (Series of Lower Top & Lower Bottom)

• Lower Top are dull/ cool off in nature

• Lower Tops are form with low volumes & Lower


Bottoms are with high volumes

• Action : Sell on Rise (Nearby Lower Top)


Sideways Trend
Sideways Trend

• Sideways trend (Series of Same Top & Same Bottom)

• Same Top & Bottoms both are dull/ cool off in nature

• Same Top & Bottoms are form with low volumes

• Action : Buy at Same Bottom & Sell at Same Top


General Price Movement
Trend line

A straight line that Line either touch


connect a series of from top or
security price bottom

Line must touch Trend line is in


two tops or continuation until
bottom it breaks
Trend line
Channels

 The price action contained


between two parallel lines
in a trend.
 The two lines of a channel
represent support and
resistance.
 Trend, or price channels,
 Upward Channel
 Downward Channel
 Sideways Channel
Thank You

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