Introduction to Trend Identification

Study Notes

A big institution wants to get rid of 50 billion dollars in a bullish market.
They place orders to buy assets at specific discount rates (e.g., 60% off) to sell later when prices rise.
Trend lines form as a result of these orders, indicating support and resistance levels.
In a bullish market, the trend line is drawn below the price, connecting the market's lows (valleys).
The trend line serves as support, and when it is breached, it becomes resistance, causing the price to reverse.
The proper way to draw trend lines depends on the market trend: below the price in a bullish market, above the price in a bearish market.
The outermost boundary of the diagonal support and resistance is crucial when drawing trend lines.
When price breaks the outermost boundary, it may indicate a potential trend change.
The reaction point, where the price breaches and then retests the trend line, is an important concept.
The terms "peak" and "resistance" can be used interchangeably to refer to the highs of the market that create the trend line in a downtrend.
A big institution wants to get rid of 50 billion dollars in a bullish market.
They place orders to buy assets at specific discount rates (e.g., 60% off) to sell later when prices rise.
Trend lines form as a result of these orders, indicating support and resistance levels.
In a bullish market, the trend line is drawn below the price, connecting the market's lows (valleys).
The trend line serves as support, and when it is breached, it becomes resistance, causing the price to reverse.
The proper way to draw trend lines depends on the market trend: below the price in a bullish market, above the price in a bearish market.
The outermost boundary of the diagonal support and resistance is crucial when drawing trend lines.
When price breaks the outermost boundary, it may indicate a potential trend change.
The reaction point, where the price breaches and then retests the trend line, is an important concept.
The terms "peak" and "resistance" can be used interchangeably to refer to the highs of the market that create the trend line in a downtrend.

Description

This introductory video covers the basics of trend identification, focusing on trend lines, their representation, conceptual basis, identification, and practical examples. The goal is to understand what a trend line is and how it applies to market analysis.