II.5. The concept of “trend”. Bearish and bullish trends.

Trend – steady price movement up or down over a long time interval. A steady upward movement creates a bullish trend, downwards – a bearish trend. Trading against the trend is strongly discouraged. The exception is transactions in Long against sharp falls down in order to catch a rebound (catching knives. The technique requires a quick reaction and the presence of stops). Let’s look at examples of trends on charts.

Рис.32. Акция «Газпром АО». Бычий тренд (растущий).

Fig.33. Aeroflot stock. Bearish trend (downward).

Fig.34. The action of Tatneft PJSC. Sideways trend (flat) relative to the price of 500 rubles.

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