MODULE THREE: THE STRUCTURE OF THE MARKET
This market has three different structures: uptrend, downtrend, and sideways movement. This is how the market can move, and it revolves around these three concepts. As an example, consider the Euro:
Up-Trend: The Euro is worth more if the Trend is upward.
Down-Trend: If the Trend continues to be negative, the Euro will lose value.
Sideway Trend: Prices move in a narrow range in a sideways trend.
On the chart, we’ll now draw an uptrend. The first step is to spot an uptrend in a line chart, such as the one below.
In the charts, here’s another example of a Downtrend.
Finally, here’s how a sideways move in the charts looks. Regrettably, it will never be as lovely as the first illustration.