🎓 Week 1 — Day 2
📊 Basics of Trading — How to Understand the True Market Direction?
Yesterday we learned how to read the chart… and today we will learn the most important skill in trading:
🔥 Identifying the Trend
Any professional trader asks themselves one question before entering any trade:
👉 Is the market bullish, bearish, or sideways?
🟢 Bullish Trend
✔ Higher highs than before
✔ Higher lows than before
✔ Price is often above moving averages
In this case, the smart trader looks for buying opportunities only.
🔴 Bearish Trend
✔ Lower highs than before
✔ Lower lows than before
✔ Price is often below moving averages
Here the professional trader reduces risk or looks for selling opportunities.
🟡 Sideways Trend (Range Market)
✔ Price moves between support and resistance
✔ No clear direction
✔ The market is full of false breakouts
⭐ The secret that most traders won’t tell you:
Knowing the trend is more important than knowing the entry point.
🧠 Golden advice:
Trend is your best friend.
💬 Do you prefer trading with the trend or do you like counter-trend trading? And why?