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Trend Analysis

  • It is based on the observation that market participants tend to act in herds and that trends tend to stay in place for some time.
  • In an uptrend, the security's prices goes to higher highs and higher lows.
  • A downward trend makes lower lows and lower highs.


A low price range in which buying activity is sufficient to stop the decline in price.



A high price range in which selling is sufficient to stop the rise in price.

Change in polarity principle:

Once a support level is breached, it becomes a resistance level and once a resistance level is breached, it becomes a support level.

  • Supply-Demand dictate prices
  • Driven by rational & irrational behavior
  • Prices move in trends that persist for long periods
  • Observe the actual shifts in supply / demand in market prices

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