🚦Who's Really Moving the Market? 3 Types of Trends You Must Know Before You Trade!
In the world of trading, not every price move signals a true trend reversal. Dow Theory breaks down market movement into three distinct types of trends — and knowing the difference is key:
1. Primary Trend:
This is the long-term movement of the market, lasting from months to years. It reflects the real intentions of large investors and defines the market’s overall direction — either bullish or bearish.
2. Secondary Trend:
These are medium-term corrections within the primary trend. For example, a temporary downtrend in a long-term bull market. It can last for weeks, but it doesn’t change the bigger picture.
3. Minor Trends:
Short-term fluctuations that last days or weeks. They often create noise and confusion, especially for beginners — but they’re useful for scalpers and short-term traders.
Knowing which trend you're trading in helps shape your entire strategy — and protects you from costly mistakes.
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📌 In the next article: we’ll break down the three phases within a primary trend and how the “smart money” operates.
🔍 If you're serious about understanding how markets move, follow this series.
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