Follow the trend

The stock market price contains all the factors that affect the price. On the market there are some patterns of behavior repeated at different times.

Prices are related to trends. The upward trend is a series of higher and higher pits and peaks. The downward trend is a series of lower and lower peaks and pits. There are situations in which actions move in a certain direction.

You have to learn to recognize if a given formation is a trend and if you make money. A line graph is a visible line that combines closing prices from consecutive days and a bar chart shows the price range for each day. The candlestick and arithmetic charts are the most popular. These graphs show the course of the whole session and subsequent sessions.

There are also support lines and resistance lines. The support line is a support for the upward trend, which means that the upward pockets are rising. The line of resistance is a downward trend, which is connecting lower and lower peaks.