Trends

● Trends can broadly be categorized into three directions: upward, downward, and sideways.

1.Upward trend refers to a gradual increase in both highs and lows over time.

2.Downward trend refers to a gradual decrease in both lows and highs over time.

3.Sideways trend occurs when supply and demand reach a balance, resulting in horizontal movement.

Support and Resistance in Trend Trading Perspective:

1.The most basic principle of trading is to confirm support at a support level before buying, and to confirm resistance turning into support after a breakout before buying.

2.If a resistance breakout does not occur, wait for a decline to the support level and confirm support before buying. If the expected support level breaks, cutting losses is necessary.

3.It is not critical to determine whether the current position is a low or high point.

4.We can anticipate where support and resistance will occur, allowing for a confident entry into a definite upward trend.

5.For aggressive investors, anticipating a resistance breakout and entering early can maximize profitability. If a breakout does not occur, cutting losses is essential.