Trend is the direction of the market. In other words, it is the direction of peaks and troughs that constitutes market trend as the market generally move in successive waves (zigzags) with fairly obvious peaks and troughs.
The market moves in three directions:
1. Upward trend or uptrend (bullish) – Series of successively higher peaks and troughs – “go long”
2. Downward trend or downtrend (bearish) – Series of successively lower peaks and troughs – “go short”
3. Sideways trend (trendless) – Series of Horizontal peaks and troughs – (a third of the time the market moves is flat/horizontal) – “stand aside”
Major Trend – Anything over 6 months – Dow considered years
Intermediate Trend – It is a correction in the Major Trend - Three weeks to three months as per Dow’s
Near term Trend – It is a correction of the Intermediate Trend - Less than 2 or 3 weeks as per Dow’s
The market moves in three directions:
1. Upward trend or uptrend (bullish) – Series of successively higher peaks and troughs – “go long”
2. Downward trend or downtrend (bearish) – Series of successively lower peaks and troughs – “go short”
3. Sideways trend (trendless) – Series of Horizontal peaks and troughs – (a third of the time the market moves is flat/horizontal) – “stand aside”
Major Trend – Anything over 6 months – Dow considered years
Intermediate Trend – It is a correction in the Major Trend - Three weeks to three months as per Dow’s
Near term Trend – It is a correction of the Intermediate Trend - Less than 2 or 3 weeks as per Dow’s