Determining the trend (Trend) of the market is the first prerequisite of an investor. Most investors who want to go against the market trend are suicidal because an individual can’t fight the whole market. Therefore, trends are very important, almost the most basic knowledge for investors in the financial market.

What is Trend?

Trend, also known as “Trend”, represents the price direction of an asset in the crypto market in particular, a coin or token, and the financial market in general, shares, gold, and coffee prices. …. Help investors determine the direction of the market in the future to increase the rate of successful transactions.

Note: Particularly for the Crypto market, which is a small-cap market with a very high price range, the trend indicators in the daily candlestick charts are difficult to accurately reflect the trend of the coin or currency. that token in short-term volatility.

Trend classification

There are 3 common trends: Uptrend (uptrend), Downtrend (Downtrend), Sideway (unknown trend).

Identifying the Trend is extremely important, legendary investors once said: “Trend is friend”. When investors have identified the trend, the success rate of that transaction has been significantly increased.

Types of Trends

Uptrend

Uptrend (uptrend) is the trend of price moving in an uptrend. This is the preferred time to buy and wait for the price to rise further.

Features of Uptrend:

• The new peak is higher than the old peak.
• The new low is higher than the old low.

Downtrend

Downtrend (Downtrend) is the trend of price moving in a bearish pattern. This is the time to give priority to sell and wait for the price to drop further to continue accumulating.

Features of a downtrend:

• The new peak is lower than the old peak.
• The new low is lower than the old bottom.

Sideway

Sideway is a market trend that is moving sideways and fluctuates within a specified price range, neither increasing nor decreasing clearly in one direction. Many traders won’t trade in the Sideway market because they don’t know the price trend. However, some traders can make a profit from the Sideway market.

Sideway Features:

• The new peak is equal to or close to the old peak.
• The new bottom is level with or close to the old bottom.

To use the trendline effectively, investors need to combine with the supply and demand zone, the Japanese candlestick pattern, technical indicators such as RSI…

What is Trendline? How to draw trendline

Trendline is a straight line on the price chart that helps us identify the relative trend of the price.
The way to draw a trend is usually to connect 2 tops or 2 bottoms together. In fact, the trend can be connected from 3 or more points, which ensures the value of the trendline.

Nature:

• If the price is above the trendline, the trendline acts as a support line to increase the price.
• If the price is below the trendline, then the trendline acts as a bearish resistance line.
• If the price breaks through the trendline, the role of the trendline is converted from resistance to support and vice versa.

In the Crypto market in general and finance in particular, Trend is a required form of fundamental technical analysis for those who want to participate in financial investment. Investors can identify market trends by applying fundamental and technical analysis methods in combination with Trend Line to make judgments and decisions for their own trading.

Investors can learn more about candlestick patterns here. For new investors, you can learn to draw TrendLine by yourself Tradingview.

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