<div class="text-justify">
Welcome to Season 5 Week 1 of the Steemit Crypto Academy. It was a great break and it is awesome to be back. Reading this great lesson given by professor @reminiscence01 about "Understanding Trends", I will say that I have learnt a lot and understood enough to produce answers to the asked questions below.
***
# <center><div class = "phishy"> Introduction </div></center>
***
Market trends or market trending gives specific information to traders, of which the trends can either be bullish (upward trends) or bearish (downward trends). These give us the required information of who is on top of the market trend, either the buyers or the sellers.
These market trends help traders to know the appropriate time to buy or sell a token or coin. This can be illustrated on the chart below.
https://cdn.steemitimages.com/DQmZEu3uZ9uGZCn14havJiGqJdjmpfmsnZuxB6zpJBr6TPb/D2C6B485-91CD-4087-B54F-4EA84073C394.jpeg <center>[Screenshot taken from Tradingview](https://www.tradingview.com/)</center>
https://cdn.steemitimages.com/DQmcuH4zxgaojc7rkB8QbBNRFycJ6pUcieURHZ4FrkbTkAW/240A837F-547A-48BC-AAB9-B1298B3E4495.png
***
# <center> Question 1 </center>
***
## <center><div class = "phishy"> 1) a) What do you understand by a Trending market? </div></center>
***
What do you understand about a trending market?
From my understanding, I will say that a trending market is a market whereby the market price is moving towards a particular direction, which can either be upwards (bullish) or downwards (bearish) within a particular time frame. The movement can be higher high or higher low in upward trending, and lower low or higher low on the downtrend movement.
A market trend can either go upwards or downwards, that is, when the market is trending upwards, the movement is both up and down but it doesn’t cross the higher low. When the market is trending downwards, it shows a negative move thereby showing traders that the market is being controlled by buyers. This allows the traders to technically analyse the market by being able to notice or spot the market trends using technical analysis indicators.
There are three different types of trends which include the downwards, upwards and sideways trends which can also be known as the ranging market. The ranging market prices tend to be bounded below and above by a consistent level of resistance and support.
***
## <center><div class = "phishy"> b) What is a bullish and bearish trend? (screenshot required) </div></center>
***
The bullish and bearish terms have been so popular these days which I can say is a good thing and for a little information about what I know they mean is that Bull which is an animal which is known for lifting everything with their horns on an attack thereby implying an uptrend or high while Bears are another species of animals that which weaken their preys by dropping them on the ground which implies a downtrend in relation to the crypto world. So in the crypto world, the Bull movement is an upward movement of prices which indicates how a Bull attacks and a Bearish movement shows the downward movement of prices as to how the Bears attack.
### <center> BULLISH TREND </center>
This is a continuous rise in the prices of commodities in the market within a non-existent limit. Since there is an upward movement in prices, there is little or no risk cryptocurrency holders have. In this bullish state, investors are constantly buying, giving a boom in the market price of that crypto. This period of trend is known as the bull season and in the Bull market, there is a high demand for that commodity in the market which in turn increases the price of the commodity and also increases the market volume and circulation of that commodity in the market.
<center>https://cdn.steemitimages.com/DQmRqrGApQbngmCEZQhhvEEnVCdkSMHkZ6cvcCpmVpSQt4p/47728BE6-D4B3-4167-AD7B-161628E49D37.jpeg</center><center>[Screenshot taken from Tradingview](https://www.tradingview.com/)</center>
### <center> BEARISH TREND </center>
This is a trend that indicates a decrease in the prices of a commodity in the market within a non-existent time. Unlike a Bull, a downtrend or a Bear is a great risk for investors (holders) of that commodity. The downtrend is a period when prices fall negatively thereby causing a contraction in the market economy.
<center>https://cdn.steemitimages.com/DQmWvH86f894QS1cC8uYHLASru3X7k3L74zd4kfMKxMwMf3/8062FA8E-10D2-4388-B4FC-79CC5A3FECF0.jpeg</center> <center>[Screenshot taken from Tradingview](https://www.tradingview.com/)</center>
https://cdn.steemitimages.com/DQmcuH4zxgaojc7rkB8QbBNRFycJ6pUcieURHZ4FrkbTkAW/240A837F-547A-48BC-AAB9-B1298B3E4495.png
***
# <center> Question 2 </center>
***
## <center><div class = "phishy"> 2) Explain the following trend identification and give an example of each of them. (Original screenshot needed from your chart). Do this for a bullish and a bearish trend. i) Market Structure. ii) Trendlines </div></center>
***
***
## <center>Market Structure</center>
***
A market structure gives general information about the state of every market. This can be better understood when looked in with graphical details whereby they tell us if a market is increasing or decreasing or it gives us information on the changes that occur in the market.
Following a market structure in a Bullish Trend, we will notice a higher-high and high-low structure implying that there is a gradual increase in the prices and also means the price wasn't traded at the previous low and a little close above the previous high and with this structure, the market is always aiming to raise. This structure gives an opportunity to the holder of that commodity to sell as its price rises and a buying opportunity to them as the prices fall.
<center>https://cdn.steemitimages.com/DQmZzsfgxbhetVYp5fSJL1YRMkkAcKREbmToviMNih8VVTv/B6743D30-5294-46D8-BA1D-ECF1C41A4DE8.png</center> <center>[Screenshot taken from Tradingview](https://www.tradingview.com/)</center>
Following the Bearish Trend, we will notice a lower high and a lower low structure meaning there is a gradual decrease in the prices. This all means the price didn't trade close above the previous high. This structure gives us information that the market is at a continuous decrease target. This structure gives an opportunity to the holder of that commodity to buy as its price decreases and a selling opportunity to them as the price increases.
<center>https://cdn.steemitimages.com/DQmYGP99VstdN8Znaz16s6M3Qf2zG9UGGFsfavJs2hfRmCc/C4920DB0-115D-464A-914D-0D0258812AD1.png</center> <center>[Screenshot taken from Tradingview](https://www.tradingview.com/)</center>
The market structure does not go uptrends or downtrends but it rather moves horizontally and when this happens, it is known as a **Ranging Market**. A ranging market means that the market increases and decreases at resistance and support points. This structure always occur when before an increase in the market as there are times where whales turn to collect goods from small investors as can be seen on the graph below
<center>https://cdn.steemitimages.com/DQmPorMLBNRYRC2DHDYVik5rDF5TBR6Sc9wP6DUe8ufrPuZ/61F870A5-CF05-492D-95A3-9C1B4090F2D5.png</center> <center>[Screenshot taken from Tradingview](https://www.tradingview.com/)</center>
***
## <center> TRENDLINES </center>
***
Trend lines are one of the tools which we frequently use in technical analysis and they are of very great importance in the determination of the market direction. So we can say for an uptrend, we can join 2 low points with a consideration of their extension or for the downtrend the 2 high points can be joined and a position is taken as maintained by the extension of the line.
For an uptrend cryptocurrency whose line is drawn and the price touches the trend line, it realizes support and goes up. So for traders who buy and sell that cryptocurrency, it's one of the tools which can make the trade realise some profit. Except if the trend line is broken along the downside, the price of the cryptocurrency will constantly resurface and show itself up and when the trendline is broken, it indicates the time to exit that position.
<center>https://cdn.steemitimages.com/DQmb38K6EHTgcJxzt1AbEd53SjkB7cZttw1jF3ocGD4rJ9Z/19C8B320-069D-4C9D-9E67-F0D35D989FDC.jpeg</center> <center>[Screenshot taken from Tradingview](https://www.tradingview.com/)</center>
For a cryptocurrency that is in a downtrend and whose line has been drawn, when the price touches the trend line it experiences a resistance which in turn goes down. For traders and investors of that cryptocurrency, it's one of the tools which can make a profit for the trade. So long as the trend doesn't get broken, the price of that crypto will keep finding itself down. And when the trend line is broken, this can be interpreted as a rise and a position can be entered with the provision of required controls with other technical analysis tools.
<center>https://cdn.steemitimages.com/DQmPiSzRQEnh76CfF7qYoVgEpb4dpXkTTDwpYe47CxHPzKD/48DACADE-96E2-4CD5-9F4D-329C09F23E4D.png</center> <center>[Screenshot taken from Tradingview](https://www.tradingview.com/)</center>
https://cdn.steemitimages.com/DQmcuH4zxgaojc7rkB8QbBNRFycJ6pUcieURHZ4FrkbTkAW/240A837F-547A-48BC-AAB9-B1298B3E4495.png
***
# <center> Question 3 </center>
***
## <center><div class = "phishy"> 3) Explain trend continuation and how to spot them using market structure and trendlines. (Screenshot needed). Do this for both bullish and bearish trends. </div></center>
***
Thinking of a trending market, there must be a fluctuation or change of price and touching of the trendline for the occurrence of a trend which causes a repetition of up and down movements. As far as the trend continues, there are those who make profits and exit and those who enter a new position when the prices are low thereby ensuring the continuity of a trend.
There are 2 important points in both bullish and bearish trends which are
#### Bullish Trend
1) The new low must be higher than the previous low.
2) The new high must be higher than the previous high.
#### Bearish Trend
1) The new low must be lower than the previous low.
2) The new high must be lower than the previous high.
As to say, the resistance is tested frequently and broken in the bullish trend while the supports are broken by being tested once more in the bearish trend. If these are not met, the trend is weakened and the trend may change its direction. In such a case, the double top or double bottom structures may be referred to.
<center>https://cdn.steemitimages.com/DQmYsKai8Bc6Dn48iFDBer2x9nHaeL2tszU7UsvjBp8QZaz/AFA07731-802F-4CD4-8437-F8391B866120.png</center> <center>[Screenshot taken from Tradingview](https://www.tradingview.com/)</center>
<center>https://cdn.steemitimages.com/DQmTp2opBVaE5Hn5Q8sYJZrTQV9dLMXxsSwhxyETn1y6KnS/AC50F882-9ED5-44D6-86BD-F67F8CBF7170.png</center><center>[Screenshot taken from Tradingview](https://www.tradingview.com/)</center>
Because this is the case in Market Structure, the condition in Trendlines is as follows. Spotting Trend Continuation can only be valid if the trend line is not broken and if there is a breach across the trendline, it can only indicate a trend reversal. It can be seen in the screenshot below for both bullish and bearish.
<center>https://cdn.steemitimages.com/DQmPcrdSppwg1DXzjeVY1m69h9BnkojtyxSgLjResofBDSr/48F5D19C-C495-4CE2-8EC8-6407E7FFEACE.png</center> <center>[Screenshot taken from Tradingview](https://www.tradingview.com/)</center>
<center>https://cdn.steemitimages.com/DQmZEqS38iQUWfsFefuX7af82KUxvEGgcMRBjqLiPUYK3z9/29EC6686-55E6-4B7C-852D-E4B2B79538C9.png</center> <center>[Screenshot taken from Tradingview](https://www.tradingview.com/)</center>
https://cdn.steemitimages.com/DQmcuH4zxgaojc7rkB8QbBNRFycJ6pUcieURHZ4FrkbTkAW/240A837F-547A-48BC-AAB9-B1298B3E4495.png
***
# <center> Question 4 </center>
***
## <center><div class = "phishy"> 4) Pick up any crypto-asset chart and answer the following questions -i) Is the market trending? ii) What is the current market trend? (Use the chart to back up your answers) </div></center>
***
## <center> Is the Market Trending? </center>
Choosing the SLP/USDT pair. It can be seen that in early October, the bearish trend was breaking and on the day of my assignment, it is neither in the uptrend or downtrend but rather it is in a zig-zag form between support and resistance in a horizontal position.
## <center> What is the current market trend? (use the chart to back up your answers) </center>
As said and elaborated above, there is no current trend to the crypto pair chosen above. it is now in its Ranging Phase. Even though it had a rapid rise in early Nov, it couldn't stay above the resistance value and then fall towards the support point. This gives a possibility that it is the bottom point with Whales picking up holdings of the small investors who have made a great loss or are just too tired of waiting for a rise. To assess if there is a possibility of any rise, technical analysis can be done. It is advisable for several different analyses to be used so as to get better results thereby minimising the errors in our conclusions.
<center>https://cdn.steemitimages.com/DQmfQXDKBukAS1QQjEVYuUFFfR3UsRHz4FLdepBAd5MNX7u/7DD89596-71DC-4A00-B472-2D13CE9AFC35.jpeg</center> <center>[Screenshot taken from Tradingview](https://www.tradingview.com/)</center>
https://cdn.steemitimages.com/DQmcuH4zxgaojc7rkB8QbBNRFycJ6pUcieURHZ4FrkbTkAW/240A837F-547A-48BC-AAB9-B1298B3E4495.png
***
<center><div class = "phishy"> Conclusion </div></center>
***
Understanding the conof Trend is very important in all the aspects of trading and the environment as a whole. As small investors, we have to be able to understand trends because of the constant fluctuations in the market and know they have to always be taken in to consideration when we draw our analysis. We should know and understand when to enter a position and when to exist.
I appreciate professor @reminiscence01 for such a wonderful and very important topic of the week I have learned and understand this concept which is very important to as a crypto trader and investor.
Cc: @reminiscence
https://cdn.steemitimages.com/DQmcuH4zxgaojc7rkB8QbBNRFycJ6pUcieURHZ4FrkbTkAW/240A837F-547A-48BC-AAB9-B1298B3E4495.png
# <center> God Bless You </center>
</div>