Trends, Sideways Trend Patterns

Question 1

What is a Sideways trend and how do you identify it?

Answer 1

No HHLL and LHLL

Question 2

How many types of Sideways trends are there?

Answer 2

Eight.
1. Equal Highs and Equal Lows - Consolidation
2. Higher Highs and Lower Lows - Broadening Formation (Like a Crocodile mouth)
3. Equal Highs and Lower Lows - Also a Broadening Formation.
4. Higher Highs and Equal Lows - Also a Broadening Formation.
5. Lower Highs and Higher Lows - Symmetric Triangle Formation.
6. Lower Highs and Equal Lows - Descending Triangle Formation/Pattern.
Equal Highs and Higher Lows - Ascending Triangle Formation/Pattern.

Question 3

In which types of Sideways trend, we can predicate the direction of the trend

Answer 3

Descending triangle and Ascending triangle. In Descending triangle, we predict the downtrend and in ascending triangle we can predict the uptrend.

Question 4

How many types of trend movements are there in general after base is formed.

Answer 4

1. RBR (Rally Base Rally) - Bullish Continuation Pattern in Uptrend
   
   2. DBD (Drop Base Drop) - Bearish Continuation Pattern in Downtrend
   3. RBD (Rally Base Drop) - Top Reversal
      DBR (Drop Base Rally) - Bottom Reversal

Question 5

What are the rules of drawing a trend line?

Answer 5

In an uptrend, we join the higher lows, and, in a downtrend, we join the lower highs. In both scenarios, 2 touch points and one confirmation point makes a trend line perfect.

Question 6

What are the common things in an uptrend and downtrend?

Answer 6

Breakouts are common in uptrend and Breakdowns are common in downtrends