(Spoiler for the next issue: How to find support and resistance after the trend is clear)

We often find that when the market goes up, there are people shouting "bull return", and when the market goes down, blockchain will rush in. So how to block the influence of others? We need to define the trend in our own minds, not be led astray by the big names, and cut our losses when chasing ups and downs.

1. Definition of Trend

Generally speaking, the trend is the direction of the market. There are many professional definitions. Uncle Ai summarizes it as the highs and lows of the market. The trend is determined by the changes in the highs and lows. The highs become lower, the lows become higher, the highs become higher, and the oscillation of disordered fluctuations.

(As shown in the figure: BTC 4h chart, the high and low points are constantly rising, and the market is oscillating upward around the trend line. This period of market is an upward trend)

Second, the direction of the trend

We all know that market changes are determined by the balance of supply and demand of orders. The imbalance between supply and demand leads to fluctuations in prices, either rising or falling. The three trends we mentioned, namely, rising, falling, and horizontal extension, are all well-founded. Many people are accustomed to thinking that the market has only two trend directions, either rising or falling. But in fact, the market has three movement directions: rising, falling, and horizontal extension. According to conservative estimates, at least one-third of the time, prices are in a horizontal extension form, which belongs to the so-called trading range, so it is important to make clear the difference. This horizontal extension indicates that the market is in equilibrium for a period of time, that is, in the above price range, the forces of supply and demand have reached a relative balance.

(Key point: distinguish the main trend from the secondary trend, go against the small and follow the big. The trends in different cycles will be different, so the market will often see long and short calls each other stupid)

Three trends


1. Uptrend: Highs get higher and lows get higher

2. Downward trend: highs become lower, and lows continue to reach new lows

3. Disordered high and low point oscillation trend