A
trend is simply the overall direction prices are moving: up, down or flat.
Classification:
- short term - less than 3 weeks
- medium term - 3 weeks to 6 months
- long term (major term) - more than 6 months
An
up-trendline is a straight line passing through the rising troughs of an up-move. The importance of a trendline is increasing with every additional touching point, confirming the trendlines value. A reversal of the trend is indicated with a violation of the up-trendline.
A down-trendline is a straight line passing through the falling troughs of a down-move. The importance of a trendline is increasing with every additional touching point, confirming the trendlines value. A reversal of the trend is indicated with a violation of the down-trendline.
A
neutral trend means there is no direction.
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