How do we know whether the trend is rising or falling, or accumulation or distribution, which we call a horizontal trend? Here, as always, maturity is important. Depending on the time period, the trend may be in different directions. ⚠️
We can understand the uptrend by the price making rising lows and rising highs, and the downtrend by the price making falling lows and falling highs. If the price cannot make new bottoms and tops, it means that it cannot create a trend, remains unstable and we understand that it is in a horizontal trend.
Higher high = Rising (High) peak
Higher low = Rising low
Higher low = Falling (Low) peak
Lower low = Falling low
Horizontal trends are also areas where the price is stuck, and this can occur with various formations, triangular rectangular formations etc. Here, the breakout directions are important for us to understand whether they are accumulation or distribution.
Although various indicators are tried to be used to predict the direction of the breakout, although it is not a 100% reliable method, it may be useful to make a prediction from the buying and selling differences in that region.
If we think there is an accumulation in horizontal trends, this requires us to think that it will break up, if we think there is a distribution, this requires us to think that it will break down. Or, if we go the opposite way, we can say that if the horizontal trend breaks up, there is accumulation, and if it breaks down, there is distribution. 🙌🧢
