An extended range where price is between two levels moving sideways.
A bearish trend that consists of lower lows and lower highs.
A level where price bounces off of, also known as the ceiling. It works hand in hand with Support as it is the opposite but it does the same thing.
A level where price continues to bounce off of, also known as the floor. It works hand in hand with Resistance.
Uptrend is a rise in price which describes the direction in which the market is heading. When price is in an uptrend you will see it make higher highs and higher lows.
BeginnerEarly Stages for Beginners8 Topics
Forex Terminology11 Topics
- Major and Minor Currency Pairs
- Basic Forex Terminology
- Pips & Ticks
- The Broker & The Spread
- What is a Lot?
- Stop Loss & Take Profit
- Margin & Leverage
- Retracement & Reversal
- When Can I Trade Forex? Sessions - Market Open and Close
- 3 Types of Analysis (Technical, Fundamental, Sentiment)
- 3 Ways a Market Can Go (Up, Down, Sideways)
Margin & Leverage2 Topics
Personal Psychology Questions2 Topics
Psychology for Beginners7 Topics
IntermediateIdentifying Scams2 Topics
Brokers for Beginners5 Topics
Technical Analysis13 Topics
- Types of Charts
- Understanding Japanese Candlesticks
- Candlestick Patterns For Beginners
- Single, Double & Triple Candlestick Patterns
- Support and Resistance
- Confluences w/ Candlesticks & Support & Resistance
- Counter Trend Trading/ Counter Trend Lines
- Moving Average
- Top-Down Analysis
- Consolidation Trading (Breakout, Retest, Continuation)
Market Structure5 Topics
CompletionRisk Management for Beginners8 Topics
Fundamental Analysis9 Topics
AdvancedUsing Indicators6 Topics
Technical Analysis (Part 2)8 Topics
3 Ways a Market Can Go (Up, Down, Sideways)
We are going to look at charts and understand what it’s saying to us in a few more sections, but until then, let’s understand how the market moves. When looking at a chart, there’s only 3 ways the market can move!
An UPTREND is exactly that, an overall move towards a higher price. This is where you’ll notice price making higher highs and higher lows. What higher highs and higher lows mean is the market will head UP, and once it gets to a high point, it’ll retrace and make a low. Once price is done retracing, it’ll shoot up HIGHER than the previous high before retracing again. While it’s retracing, it’ll form a new low, but that low is higher than the last low. When you see the market creating higher highs & higher lows, you know it’s an uptrend. Look at the example below!
A DOWNTREND is the complete opposite of an uptrend. This is where you’ll see the overall direction moving towards a lower price, which is created by lower highs and lower lows. Just like an uptrend represents higher highs & higher lows, a downtrend is the complete opposite. Price will go very low, retrace to a high point, head back down and form a new low that is lower than the previous low, then retrace back to a high point that is LOWER than the previous high. When you see lower highs and lower lows, you know the market is heading down, as a downtrend is present.
SIDEWAYS, also known as consolidation and congestion, usually means there’s a lot of indecision within the market. Price hasn’t made its mind up on which direction it really wants to go, which usually happens after a major trend or after the news has calmed down. You will begin to notice CONSOLIDATION coming to an end once price breaks out of the support or resistance area that you drew on your charts!
Now that you have a basic understanding of how the market moves and of the terms within the Forex Market, we now can talk a little deeper about margin and leverage before discussing one of the most important things in your trading career: YOUR BROKER!
Understanding the actual charts (technical analysis) will come in a few more sections. Stay patient. All of this information is extremely vital! Let’s get it!