#Binance
today 8 – Trend Analysis
What is a trend?
A trend is the general price movement path over a certain period of time, and it can be:
Uptrend:
The price forms higher highs and higher lows.
Indicates that buyers are in control.
Downtrend:
The price forms lower highs and lower lows.
Indicates that sellers are in control.
Sideways / Range:
The price moves within a specific range between support and resistance.
Indicates a balance between supply and demand.
Why is trend analysis important?
It helps you trade with the trend (safer and more profitable).
It gives you an idea of when to enter a buy or sell trade.
It helps reduce the risks of trading against the trend.
How do you determine the trend?
Look at the highs and lows on the chart.
Use trendlines to draw the price trend.
You can use moving averages to confirm the trend.
Today's exercise:
Open a trading platform and watch a currency pair.
Draw ascending and descending trendlines on the chart.
Determine whether the trend is upward, downward, or sideways.
Try to trade only with the trend you identified (for example: buy in the uptrend.
