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Strong Buy Buy
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Sell Strong Sell
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Neutral
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Market Trends

A market trend is how the market moves over a given period of time. If the move over a period of time is consistent then a trend is believed to have formed.

If the trend is formed over a longer time frame it is called secular. A trend that is formed over medium term is called primary. And short terms are called secondary.

Trends allow traders to analyze charts and make informed decisions.

Types of Trends

There are three types of trends, namely:

1. Up trend
2. Down trend
3. Sideways Trend

Up Trend

Up trend is formed when currency value rises consistently over a period of time. In other words, an uptrend means the price is rising and bulls are in control.

Down Trend

Down trend is formed when currency value depreciates consistently over a period of time. In other words, a down trend means the price is falling and bears are in control.

Sideways Trend

Sideways trend is formed when the market is moving consistently between a price range, i.e. an upper and lower level and doesn’t break the range.

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