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Definition (as per Investopedia)
A trend is the general direction of the price of a market, asset, or metric. It is the direction of peaks & troughs that constitute the trend.
Definition (as per Investopedia)
A trend is the general direction of the price of a market, asset, or metric. It is the direction of peaks & troughs that constitute the trend.
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Categories of Trend
There are 3 categories of trend-
1⃣PRIMARY/MAJOR Trend (TIDE)
2⃣SECONDARY/INTERMEDIATE Trend (WAVE)
3⃣MINOR Trend (RIPPLE)
Categories of Trend
There are 3 categories of trend-
1⃣PRIMARY/MAJOR Trend (TIDE)
2⃣SECONDARY/INTERMEDIATE Trend (WAVE)
3⃣MINOR Trend (RIPPLE)
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PRIMARY Trend
These are the broad overall up & down movements of the market lasting for more than a year.
🔹The long term investors are concerned with the Primary/Major trend.
PRIMARY Trend
These are the broad overall up & down movements of the market lasting for more than a year.
🔹The long term investors are concerned with the Primary/Major trend.
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SECONDARY Trend
These are the corrections in the Major trend.
🔹Usually they last from 3 weeks to many months.
🔹Here the prices retraces at least 1/3rd to 2/3rd of the preceding move of primary trend.
🔹This is important to long term swing traders.
SECONDARY Trend
These are the corrections in the Major trend.
🔹Usually they last from 3 weeks to many months.
🔹Here the prices retraces at least 1/3rd to 2/3rd of the preceding move of primary trend.
🔹This is important to long term swing traders.
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MINOR TREND
They are of very short duration lasting from few days up to 3 weeks.
🔹A secondary trend consists of series of 3 or more distinct minor waves.
🔹This is of major concern to day traders.
MINOR TREND
They are of very short duration lasting from few days up to 3 weeks.
🔹A secondary trend consists of series of 3 or more distinct minor waves.
🔹This is of major concern to day traders.
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Each trend becomes a part of its next larger trend.
Eg. Secondary trend is the correction in Primary trend & secondary correction may contain a series of minor waves.
Each trend becomes a part of its next larger trend.
Eg. Secondary trend is the correction in Primary trend & secondary correction may contain a series of minor waves.
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Trend can be different in the same stock in different time frames.
Hence if someone asks about the trend of a market it is important to know the time frame for which the person is inquiring.
Trend can be different in the same stock in different time frames.
Hence if someone asks about the trend of a market it is important to know the time frame for which the person is inquiring.
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Importance of Time Frame👇
Importance of Time Frame👇
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That's all for this thread. I will discuss more about the phases of Trend (Bull & Bear) in the next thread.
Retweet for wider audience.
Thank u for your patience!
Meanwhile keep learning, trading & earning✌️
Ref:👇
That's all for this thread. I will discuss more about the phases of Trend (Bull & Bear) in the next thread.
Retweet for wider audience.
Thank u for your patience!
Meanwhile keep learning, trading & earning✌️
Ref:👇
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