THE CONCEPT OF TREND IS ABSOLUTELY CRUCIAL TO THE TECHNICAL APPROACH TO MARKET ANALYSIS OTHER WISE YOU WILL BE NULL TO THE TECHNICAL ANALYSIS.THE TOOLS BASICALLY USED IN THIS TECHNICAL ANLYSIS IS SUPPORT AND RESISTENCE LEVEL,PRICE PATTERN,MOVING AVERAGES,TRENDLINES ETC.ITS MAIN OBJECTIVES IS TO HELP THE INVESTORS IN THE “TREND”.WE COME TO THIS TERMS LIKE “ALWAYS TRADE IN THE DIRECTIONS OF TREND”.”THE TREND IS YOUR FRIEND “
IN SIMPLE TERMS TREND MEANS THE DIRECTION OF MARKET,IN WHICH ITS MOVING .UPTREND,DOWNTREND AND SIDEWAYS TREND.
WE HAVE TO BE PRETTY CLEAR THAT GENERALLY MARKET DOES NOT MOVE IN STRAIGHT LINE.THE MARKET ALWAYS MOVES IN ZIGZAGS DIRECTIONS. NOW,LETS DISCUSS WHAT IS UPTREND?IT IS A SERIES OF SUCCESSIVELY HIGHER PEAKS AND TROUGHS{A LOW POINT BETWEEN TWO HIGH POINTS).DOWN TREND IS SUCCESSIVELY LOWER PEAKS AND TROUGHS.HORIZONTOL PEAKS AND TROUGHS WOULD BE THE SIDEWAYS TREND.