#PriceTrendAnalysis Trend analysis is the process of studying market movements to determine future price trends, whether upward, downward, or sideways. This analysis is an essential tool for investors and traders to make informed decisions about buying and selling.
Types of trends:
Uptrend: Characterized by rising peaks and troughs, where each peak and trough is higher than the previous one.
Downtrend: Characterized by falling peaks and troughs, where each peak and trough is lower than the previous one.
Sideways: In which the price fluctuates within a narrow range without a clear upward or downward direction.
Trend analysis methods:
Technical analysis: Relies on studying charts and price patterns to identify potential trends. Technical analysts use tools such as trend lines, moving averages, and technical indicators such as RSI and MACD.
Fundamental analysis: Focuses on studying economic and financial factors that affect the value of an asset, such as financial reports, economic indicators, and global news.
Price Action Analysis: It is based on studying actual price movements without using external indicators, focusing on candlestick patterns and important price levels.
Steps for conducting trend analysis:
Data collection: Obtaining historical price data for the asset to be analyzed.