Chart Phases

Question 1

What are ‘trends’ ?

Answer 1

• if price rises continuously it’s an upward trend
• if price falls continuously it’s a downward trend

Question 2

What are ‘correction’ phases?

Answer 2

• short price movements against the current trend direction

Question 3

What are ‘consolidation’ phases?

Answer 3

• sideways phases
• no impulses from buyers / sellers to start a trend

Question 4

What are ‘breakouts’ ?

Answer 4

• during consolidations, if one side of the market wins the majority, a breakout occurs.
• this then starts a new trend

Question 5

What’s a ‘trend reversal’ ?

Answer 5

• where the opposite side of the market starts taking the majority interest and a complete trend reversal occurs