Nowadays, Identifying trends is required to survive the unstable market.
Identifying trends, or the general direction in which a security is moving, can also be very helpful for Cryptocurrency traders. However, singling these trends out can be a challenge. Digital currencies can be highly volatile, and looking at a chart of a particular cryptocoin's price movements will likely show a series of highs and lows.
However, technicians know that they can look past the volatility and identify an uptrend when they see a sequence of higher highs and higher lows. In contrast, they can single out a downtrend when they identify a string of lower lows and lower highs.
There are also sideways trends, in which a security experiences little in the way of upward or downward movement.
Traders should know that trends come in many lengths, including short-term, intermediate, and long-term.