Market trend is the most important concept in trading.
In this article, you will learn how to identify trends using a simple method.
First, the market is made up of price movements (movements up and down). When these movements repeat and connect, they form a market trend.
An uptrend is a market condition in which the price consistently makes higher highs and higher lows. This shows that buyers are in control and the market is moving upward.
A downtrend is the opposite condition, where the price makes lower highs and lower lows. This indicates that sellers are in control and the market is moving downward.
In a simple and clean trend, price moves in one clear direction without deep interruptions or complex internal structures.
However, market trends are not always clean and simple.
Sometimes, what appears to be a single market leg is actually composed of smaller internal trends. We call these smaller structures “minor trends”.
This means every major move in the market can contain several smaller trend structures inside it.
For a trader, the key skill is to distinguish between major trends and minor trends, and to understand where a minor trend breaks versus where a major trend is likely to break.
This ability to separate market structure levels is essential for reading prices correctly and making better trading decisions.
