TRENDS
Market moves in trends, we have three types of trend, UPTREND, DOWNTREND AND SIDEWAYS TREND.
To understand the trend better we need to understand the rally and a decline. Or the upmove or the downmove.
Example of a Rally
n the above chart we have the first green bar with high and low and then we follow with another 5 green candles. In all these candles every candle forms a high higher than its previous bar high and low higher than its previous low. So, when we have a series of higher highs (HH) and higher lows (HL) then we have a rally.
Example of Decline
In the above chart we have the first green bar with high and low and then we follow then we follow with another 4 red candles. In all these candles every candle forms a high lower than its previous bar and low lower than its previous low. So, when we have a series of lower highs (LH) and lower lows (LL) then we have a decline.