Let’s learn about trends in the market, one of the important parts of the market structure.

in Steem Alliancelast year

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In the previous two series, we have discussed one of the most important parts of the formation of market structures .

You can read about supply and demand here.

In this third series of posts, I will comment on a part that is not less important than the market structure, namely the market trend or price direction.

What is a trend market?

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Screenshot from My TradingView Account

Simply put, a trend is the price direction created within the market due to the existence of the law of supply and demand.

At a time when the price experiences high demand, the market will uptrend, while at a time of low supply, the market will downtrend.

As in the example image I attached above, there is a market that is in an uptrend at a time of high demand and then turns into a downtrend when the demand is low.

Let’s identify uptrends correctly.

This is the part I like, that is, identifying a trend, and this is an example of identifying uptrends on the real market so that we get used to and easily master it.

image.png

Screenshot from My TradingView Account

Of course, I agree when the picture above shows the formation of the market in an uptrend.

In determining a valid uptrend like the picture above, there is a requirement, namely, that there are two valid highs on the market structure.

As in the picture above, I have two valid highs, validating this as an uptrend.
So at the next price, we see the uptrend movement and form a new high.

If you have already determined a valid high under the condition that there are two valid highs, you can say that the market is in the uptrend phase.

How do I identify an invalid uptrend?

If we already know how to identify market trends under valid uptrend conditions,
So now we’re going to identify which uptrends are invalid and which will deceive us when we aren’t delighted in identifying them.

In identifying an invalid uptrend, the absence of two valid highs in the market.

image.png

Screenshot from My TradingView Account

In the image above, we see that the price forms the high and the low, and then the price passes through the low.

Well, here we can already identify that the price is no longer valid for an uptrend and will continue its downtrend.

Conclusion

I think you can already distinguish which market is in a valid uptrend and which is not by looking at the two structural explanations above.

In determining a market uptrend, we can identify earlier the existence of two valid highs in the market.

It will be even more powerful when supported by a demand that is below the high valid second, and it becomes valid low to be an entry position on the market and also a movement that will be impulsive.

As far as this series of market structures is concerned, in the next session I will discuss the continuation of this topic, namely the downtrend.

Look forward to the next market structure in the series.

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Quasimodo nya enggak sekalian digabungkan? Atau jadi topik selanjutnya untuk pembentukan arah?

Aku rasa killer setup akan dilanjutkan nanti saat selesai semua materi market struktur.

Lagi pula killer setup seperti QM adalah bagian dari market struktur, dan saat paham market struktur akan mudah memahami setup yang ada di dalam market struktur kim 😅

Wookiii...
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 last year 

Dear @gitshock.trading ,

We appreciate your active participation and contributions to our community. To ensure a positive environment for all members, we have implemented a set of guidelines to maintain respectful and constructive discussions while upholding community guidelines.



  • Review:
    This is a well presented post, I hope you saw the power of the markdown code I gave to you? 😃


Now Engage, Connect, and Inspire Each Other to Reach New heights.

Thank You.

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Thank you very much for your evaluation so that my writing looks neat.

But to be honest, this coding is a bit tiring because every paragraph I use coding for neater writing.😅

btw, don't you want to review a little about the topic that I presented, bro? 🍻

 last year 

Your writing is fine, they are concepts of ICT, I paid to learn though.

Keep teaching us for free, we appreciate 😊.

For how long have you been trading now?

I appreciate you learning ICT and SMC in a paid way.

I'll give you what I know and master, hopefully this will be the good I left on this platform.

I've been trading market derivatives for three years.

 last year 

Yes ofcourse.

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