🚦Who Moves the Market? 3 Types of Trends You Need to Know Before You Trade!
In the trading world, not every price movement signifies a change in trend. Dow Theory divides market movement into three types of trends, and understanding them is your key to more precise decisions:
1. Primary Trend:
This is the long-term trend, lasting from months to years. It is clearly upward or downward, representing the true movement of large investors.
2. Secondary Trend:
Temporary corrections within the primary trend. For example, if the market is rising, we may see a medium-term decline lasting weeks. However, it does not negate the overall trend.
3. Minor Trends:
These are daily or weekly short movements. They often represent price noise that confuses beginner traders, but they are useful for quick traders.
The key here is to know at what level you are trading. Are you a short-term trader? Or a long-term investor? Each type of trend has its role and risks.
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📌 In the next article: We will break down the three stages within the primary trend and understand how the big players think.
🔍 If you are looking for a true understanding of market movement, follow the series.
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