Forex Trending Markets and Range Bound Markets
by John on 08/12/08 at 6:08 pm
There are 2 types of market conditions: the trending markets and the range bound markets.
The trending markets are markets which are moving to the upside or the downside:
Uptrend:
On an uptrend, the market is clearly moving up. On an uptrend market is easy to spot that the currency is reaching higher lows and higher highs.
On a downtrend, the currency is making lower highs and lower lows. It’s easy to spot a downtrend:
The Range bound market is not moving to the upside or the downside. It’s simply moving between a strong support and resistance:
