What is a Trending Market?
Definition of Trending Market: It is the market where the costs are moving in one direction, either down or up but not in the side direction. There can be various small cost gyrations, but they are not large to have an impact on the general way of the trend. Most of the trends last from few minutes to hours. It can also continue to weeks to months for future trends. The contradictory of trending market is known as the ranging market. This is the market in which the cost is moving to and fro between a high costs and low cost. It is generally referred as a choppy, range bound and flat market. Higher costs from the resistance line prevent the cost from increasing further and the low support line prevents downward movement. The wide range of costs saw a ranging market which can be small or big, but if the smaller one survives, it is regarded to be in the chop or moves in the side direction. The traders generally employ oscillators, which is a type of indicator to offer signal when the existing trends reverses themselves.