What are stock market trends?

Stock market trends are like the behavior of a person. After you study how a person reacts to different situations, you can make predictions about how that person will react to an event. Similarly, recognizing a trend in the stock market or in an individual stock will enable you to choose the best times to buy and sell.

What is a stock trend line?

A stock trend line is a sloping line that connects the candles of a candlestick pattern on a stock’s trend chart. Traders use this line to gauge whether a stock is keeping with the trend or breaking it. Use a trend line with other trend indicators to confirm price action. Traders want a clear trend in a stock.

How do traders identify market trends?

Traders attempt to identify market trends using technical analysis, a framework which characterizes market trends as predictable price tendencies within the market when price reaches support and resistance levels, varying over time. A market trend can only be determined in hindsight, since at any time prices in the future are not known.

What are the different types of trends?

There are three main types of trends: short-, intermediate- and long-term. A trend is a general direction the market is taking during a specified period of time. Trends can be both upward and downward, relating to bullish and bearish markets, respectively.