Identifying the market trend

For a quick visual representation of what an uptrend or downtrend looks like on a chart, check out these figures; it doesn't get much clearer. Figure 6-1 shows an uptrend.

Figure 6-2, conversely, shows a downtrend.

At times, the market environment may not be completely apparent or obvious. Either different people may see the trend or lack of trend in a different way or the time frames participants are using may cause different traders to have differing views of the trend or lack of trend. If that's the case, then pass on any trades you're considering. The uncertainty is just too high, and there will always be another trading opportunity in the future.

Figure 6-1:

A chart with a nice uptrend.

Figure 6-1:

A chart with a nice uptrend.

Figure 6-2:

A chart with a nice downtrend.

Figure 6-2:

A chart with a nice downtrend.

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