2.1: Market Trend and Range-Bound Consolidation: Often market movements happen in the form of trends. A price trend is a continuous or a directional price movement in upward or downward direction. We call them up -trend and down -trend respectively. Now if we look at price action in market through charts, we will find that no price movement happens in a straight line. Suppose we are looking at a broader uptrend represented as primary move, we may find intermediate corrections represented as secondary trend and minor counter moves among the secondary moves represented as minor trend. This is how the market behaves generally in both the up and the down trends. Market Trends Often an up- trend is represented in the form of a sequence of higher highs and higher lows. Similarly a downtrend is represented as a sequence of lower lows and lower highs. A trend is said to reverse when the sequence is broken.
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