What are the major trends in the market and what do they signify?
Understand the Problem
The section describes two major market trends: Uptrend and Downtrend, along with their behavioral implications in trading. It explains what constitutes a Rally and a Drop in market movement.
Answer
Uptrend and Downtrend
The final answer is uptrend and downtrend.
Answer for screen readers
The final answer is uptrend and downtrend.
More Information
In financial markets, trends are categorized into uptrends (bullish or rally) and downtrends (bearish or drop). An uptrend indicates a period where prices are generally increasing, driven by strong buyer interest. Conversely, a downtrend indicates a period where prices are declining, driven by strong seller interest.
Tips
A common mistake is to assume trends are permanent; always watch for signs of trend reversals.
Sources
- Market Trends: Definition, Types, How To Identify - Dovetail - dovetail.com
- 4 Factors That Shape Market Trends - Investopedia - investopedia.com
- Market trend - Wikipedia - en.wikipedia.org
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