Market trend

Market trends can be classified into three main categories: uptrend, downtrend, and sideways or range-bound trend.

• An uptrend is characterized by a series of higher highs and higher lows. This indicates that the market is in an overall bullish phase, and the price is likely to continue to rise over time.
  

• A downtrend, on the other hand, is characterized by a series of lower lows and lower highs. This indicates that the market is in an overall bearish phase, and the price is likely to continue to decline over time.
  

• A sideways or range-bound trend occurs when the market is trading within a particular price range, with no clear trend in either direction. In this case, traders may look to buy assets at the lower end of the range and sell them at the upper end, hoping to profit from the price fluctuations within the range.

Market trends can be identified using various technical analysis tools, such as moving averages, trend lines, and chart patterns.