One of the set phrases of tech analysis goes: "The current trend will be developing until it reverses". It pushes us to the idea that every trend will finish and reverse sooner or later. In this article, we will learn to detect such reversals.
Tag: trend trading
A trend is defined as a sequence of maximums and minimums. If we say that there is a bullish trend on the market, it means that every next maximum is higher than the previous one and every next minimum is also higher than the previous one. In this case only, we may presume that the trend is ascending and try buying.