The third state

Besides trending up and trending down, price consolidates. Two points in the right order are not yet a trend, and knowing the difference stops a lot of bad trades.

Uptrend and downtrend are two of the three answers. The third one is the one people skip.

Consolidation

Consolidation is price moving sideways, going nowhere in particular. No sequence of higher highs, no sequence of lower lows.

Register to access everything for free

The course is free. The account is only there to save your place and let us tell you when new lessons land.