Ang trend ng isang stock ay depende sa time na tinitingnan mo. A stock can be an uptrend sa short term while being on a downtrend long term. Depende sa haba o iksi ng time na tinitingnan mo. Lets take SMPH for example. Uptrend, Downtrend or Sideways?
How to identify trends?
You can see the difference right away but for those na may need ng specific description ganito. Ang uptrend is tumataas ang price or pataas ang price. Its not going to be a straight line but you will see tumataas ang price. This week one peso. Next week 1.2 pesos. A week after that 1.15 pesos. A week after that 1.28 pesos. A week after that 1.35 pesos. If uptrend ang stock it will and should form higher highs and higher lows. Naalala ninyo pa ang candle? May open, may close, may high at may low. (Sa ngayon lang nagbasa ng blog post ko please read this first.)
An uptrend forms higher highs and higher lows na candles.
A downtrend kabaliktaran naman ng uptrend. It forms lower highs and lower lows.
You will often hear traders say ride the trend until it bends. If gusto mo maging trend follower understanding and knowing trends is the first step. May tinatawag na trendline support or trendline resistance but I will include it when I write the blog about Support and Resistance soon. Trend is the direction where the stock price is going. It’s that simple.
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