A Price Action Up-Trend is considered bullish if consecutive Higher Highs and Higher Lows are intact. A Trend-Line can be used as a visual guide, commonly referred to as the Dynamic S/R Support. This line must be held during the duration of the uptrend, breaking it will be indicative of a potential trend reversal.
Key Characteristics of an uptrend consist of the following: Higher Highs and Higher Lows remain intact Demand is higher than Supply, thus more buyers willing to buy at higher levels Uptrends are influenced by technical and fundamental reasonings that are bullish in nature i.e., break of a strong Weekly S/R Resistance.
A Price Action Downtrend is considered bearish with consecutive Lower Highs and Lower Lows. A Trend-Line (Dynamic S/R Resistance) can be used as a visual guide that must be respected for the downtrend to remain intact. Breaking the Dynamic S/R Resistance with an impulse is indicative of a trend-reversal.
Key Characteristics of a downtrend consist of the following: Lower Highs and Lower Lows remain intact Supply is Higher than Demand, thus sellers are in control Downtrends are influenced by technical and fundamental reasonings such a break of a key Weekly S/R Support
An Internal Trendline acts as Support and Resistance in a Bullish Up-Trend (can also be in a Bearish trend). Price Action tends to oscillate closely with the Internal Trendline, causing a Support and Resistance reaction whilst trending.
Key characteristics of the Internal Trendline: The Internal Trendline can act as both Resistance and Support Price Action tends to oscillate closely whilst trending in a direction Internal Trendlines can also be found in bearish trends, the respect of the level must be clear.