In a downward trend, the goal of the trader is to sell high and profit as the price moves lower

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A good example of a long-term upward trend is that of the S&P, which moved from a low of $720 in 2009 and reached an all-time high of $2840 in 2018. In a downward trend, the security makes lower highs and lower lows. An example of a downward trend is crude oil which moved from a high of $115 in June 2014 and reached a low of $27 in 2016.


In a downward trend, the goal of the trader is to sell high and profit somalia business email list as the price moves lower. In a sideways or horizontal trend, the supply and demand of a security is usually almost equal. This makes the price move in a horizontal direction. A good example of a horizontal trend is the S&P VIX, which traded within a narrow range of between $9 and $11 in 2017.


When a security is in a narrow range, it is impossible to make a profit and so, traders wait for a breakout. In a wide horizontal trend, traders buy in the support levels and sell when the resistance level is reached. How to identify a trend With this type of trading, the challenge for traders is in identifying when a trend is forming and identifying a false breakout.