Trend strength can be measured in several ways, some using technical analysis and others using basic analytical methods. When it comes to technical analysis, and particularly trend lines, there are two commonly accepted rules: Say no to plagiarism. Get a Custom Essay on “Why Violent Video Games Should Not Be Banned”? Get an original essay The longer the trend line is held (and not penetrated), the more reliable it is. Trends in longer time frames will be more reliable.One thing We must not forget that the longer the trend, the higher the volatility. Let's take an uptrend as an example to explain this statement as follows: When the uptrend is clearly established, it will attract more participants due to the belief that the trend will continue, while some other traders due to psychological instability or that the price has "too high" and start profiting. Such orders are continually pushed into the market as volatility increases. However, the buy order remains overwhelming as most still believe that the market will continue to rise, and prices continue to be pushed towards a period called "bubble". Finally, professional players leave the market for a reversal. Then, the number of interests is low, the equilibrium number, the number of losses cut from the market caused a strong collapse The chart below, namely the circle, represents the "bubble" phase. Applying the theory to trading, you must choose a trend that has formed in a way. relatively clear with specific pricing patterns before entering the order. You should look for low volatility trends because they show trend stability and the potential for further growth. Peaks near the lows can be a good opportunity for you to take profits, but if you have not received an order, then it is a disadvantage because the market is very close to the "bubble". The uptrend and the downtrend The uptrend is the case. when there is a consensus among market participants who want to raise prices. In other words, in the uptrend phase, the order volume of those who want to buy always exceeds the order volume of those who want to sell. Ideally, prices will continually create higher peaks and higher troughs. However, in reality it is not that simple. Looking at the chart above, you can see a clear upward trend. Prices maintained momentum (following the trendline) after sellers were surpassed three times. However, when trading realistically, notice the circle, the buy side cannot create higher highs, the trendline is broken, and most traders will find that the uptrend has ended. But then the price increased and, as the previous theory mentioned, we can recognize a “mini-bubble”. With a downward trend, the order volume of those who want to sell is always exceeded by buyers and prices are pushed down. the lower levels. In the example above, you can see the strong movement of the USDJPY pair at the end of the trend. The price has been exposed four times with the trend line, in the circular zone, i.e. after the third contact price creates a mini bubble, the price is pushed down with strong force , up to price 112.0 on the buyer side. At the start of the day, we began to counterattack vigorously, bringing prices closer to the trend line. And theoretically, during periods of..