Lecture 8 - Trend Analysis and Market Trend

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1. What are the parameters for determining descending and ascending trends?
2. How is the trend line within a downward movement constructed?
3. What are the resistance and support lines?
4. What happens with the resistance level after its breakthrough?
5. Which price points link while tracing the up-going trend line?
6. What line is a channel line?
7. What event serves as a signal for opening additional long and short positions?

In this lecture we shall be learning about the methods of technical analysis.

Considering the market analysis from a technical point of view, trends appear to be a key concept.

All the analysis and assessment toolkits used by an analyst – support and resistance levels, price models, moving averages, trend bounds – are destined to carry out one task.

Using these facilities the analyst defines and estimates the trend to follow during any further trading.

All of us have faced epigrams such as “trade only within the trend,” “never go against the tendency,” “the trend is your best friend.” In the previous lectures we were discussing the concept of trends, so let’s give a definition of trends and classify them into several categories.

Broadly speaking, a trend or a tendency is a movement direction of the market.

In real life no market moves in a straight line.

The market dynamics take a zigzag course resembling a wave succession: rise and fall, rise and fall.

These dynamics fluctuations determine the market trend.

Read more of SuperForex’s Online Lecture Trend analysis here.

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