How to know/Predict stock market Trend?

  • Often market movements happen in the form of trends.
  • A price trend is a continuous or a directional price movement in upward or downward direction.
  • We call them up -trend and down -trend respectively. Now if we look at price action in market through charts, we will find that no price movement happens in a straight line.
  • Suppose we are looking at a broader uptrend represented as primary move, we may find intermediate corrections represented as secondary trend and minor counter moves among the secondary moves represented as minor trend.
  • This is how the market behaves generally in both the up and the down trends.
  • Often an up- trend is represented in the form of a sequence of higher highs and higher lows.
  • Similarly a downtrend is represented as a sequence of lower lows and lower highs.
  • A trend is said to reverse when the sequence is broken.
  • We should remember a simple point that market is not trending all the time.
  • Often the market consolidates within a small range and goes nowhere.
  • Then suddenly it can break on the upside or downside.

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