Before you can trade successfully, you must first understand what defines a market trend.
🔼 What is an Uptrend?
An uptrend is characterised by a series of Higher Highs (HH) and Higher Lows (HL). This signals that buyers are in control and price is climbing steadily.
🔽 What is a Downtrend?
A downtrend is identified by a series of Lower Lows (LL) and Lower Highs (LH). This indicates that sellers are dominant and price is consistently falling.
📌 Important Facts About a Trending Market
Trends don’t change easily. Once a trend is established, it tends to persist.
A trend reversal takes time and effort. It doesn't happen abruptly — the market needs a strong reason to change direction.
There are always warning signs. Before a trend changes, there’s usually a pattern or shift in behaviour that acts as a clue.
The bigger the trend, the longer it takes to reverse. A well-established trend will require more time and evidence before it breaks.
🎯 Keys to Trading Any Market Successfully
Identify the market condition.
Is the market trending upwards, downwards, or moving sideways (consolidating)?
Study price behaviour at key levels.
Understand how price reacts at significant highs and lows.
Learn the anatomy of price waves.
Recognise wave structure — how price expands and contracts in trends.
Align your trades with the market condition.
Your entry and exit strategies should fit the current phase of the market.
🔚 Summary
Mastering trends is one of the most important skills in trading. When you understand what defines an uptrend or downtrend, recognise when a trend may be ending, and align your strategy with the market condition, you set yourself up for consistent success. Patience, observation, and timing are key — because the market always leaves clues, but only for those who are prepared to see them.
🔼 What is an Uptrend?
An uptrend is characterised by a series of Higher Highs (HH) and Higher Lows (HL). This signals that buyers are in control and price is climbing steadily.
🔽 What is a Downtrend?
A downtrend is identified by a series of Lower Lows (LL) and Lower Highs (LH). This indicates that sellers are dominant and price is consistently falling.
📌 Important Facts About a Trending Market
Trends don’t change easily. Once a trend is established, it tends to persist.
A trend reversal takes time and effort. It doesn't happen abruptly — the market needs a strong reason to change direction.
There are always warning signs. Before a trend changes, there’s usually a pattern or shift in behaviour that acts as a clue.
The bigger the trend, the longer it takes to reverse. A well-established trend will require more time and evidence before it breaks.
🎯 Keys to Trading Any Market Successfully
Identify the market condition.
Is the market trending upwards, downwards, or moving sideways (consolidating)?
Study price behaviour at key levels.
Understand how price reacts at significant highs and lows.
Learn the anatomy of price waves.
Recognise wave structure — how price expands and contracts in trends.
Align your trades with the market condition.
Your entry and exit strategies should fit the current phase of the market.
🔚 Summary
Mastering trends is one of the most important skills in trading. When you understand what defines an uptrend or downtrend, recognise when a trend may be ending, and align your strategy with the market condition, you set yourself up for consistent success. Patience, observation, and timing are key — because the market always leaves clues, but only for those who are prepared to see them.
Note
The GBPUSD Example used in this lesson; price has progressed further.1. The pullback gave us a trend changing pattern information.
2. Sellers were able to push the price lower but could not break below the LL that created the pullback. This is a sign that the Sellers are weak and there might be more buying activities. Knowing this crucial information, you can align your decision with the buyers because of the two factors mentioned above.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.