When I first started trading, I quickly realized that markets don’t move randomly they follow patterns. Understanding whether prices are trending up, down, or moving sideways makes all the difference between winning trades and losses. In an uptrend, higher highs and higher lows show buyers are in control, and the smart move is to buy on dips rather than chasing every upward spike.
When the market is in a downtrend, lower lows and lower highs dominate, signaling sellers are in control. Selling rallies or waiting for a trend reversal before buying is usually safer. Sometimes, prices move sideways between support and resistance. In these ranges, patience pays off: buy near support, sell near resistance, and avoid chasing false breakouts.
When I combine simple price action with tools like candlestick patterns, moving averages, and volume, I can confirm trends and spot potential reversals early. Checking higher timeframes before trading smaller charts adds reliability. By learning to read trends, trade with the flow, and recognize reversals, beginners can stop guessing and start trading with strategy and confidence.