1 – Price
How to recognise trends
- every peak / high is higher than the previous peak / high.
- every trough / low is higher than the previous trough / low.
- every peak / high is lower than the previous peak / high.
- every trough / low is lower than the previous trough / low.
2 – Trade volume
What is the Trade Volume
The trade volume is the number (total) of securities traded.
3 – Time period
When trading, it is important to keep in mind that trends do not last for long and are limited to a time period.
- Long-term trend (one year or more)
- Intermediate trend (two to tweleve months)
- Short-term trend (one month or less)