The basis of the technical analysis is the trend. It is a price movement in a certain direction.
Upward trend:
Trend down:
Between trends, the price likes to relax in the lateral movement, when the trend itself is absent:
Wavelike trends.
Unfortunately, if the trends were straight as an arrow, your cat would be able to earn. However, trends rarely go straight. Usually, this is a combination of the highest and lowest levels, of which the trend consists. For example, an upward trend can often be broken down into such micro waves:
In reality, the waves, of course, are not as beautiful as on the scheme, and in a smooth beautiful trend price moves rarely (although, sometimes, it happens).
The next post will be about the duration of trends.
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