A trending market is one where prices move strongly in one direction, either up or down. The best way to visualize this price pattern is by drawing a line that follows the slope of the prices. Another hallmark of a trending market is the steady move to new highs and higher lows. Conversely, in a down trending market prices would be making lower lows and lower highs.
Trading markets don't make new highs. There is no discernible persistent move in either direction. Prices tend to ping back and forth near old highs and then fall to prior lows. Sketching this type of price action would reveal a series of peaks and valleys.
Trading markets don't make new highs. There is no discernible persistent move in either direction. Prices tend to ping back and forth near old highs and then fall to prior lows. Sketching this type of price action would reveal a series of peaks and valleys.
