Main trends

The primary objective of conducting of technical analysis is determination of direction of motion of price, and also the best prices and time for the conclusion of transactions. The technical analysis is founded almost fully on the analysis of price and volume. A price is the agreement of buyer and salesman (on which one person consents to buy, and other consents to sell). A price, on which an investor wishes to buy or sell, depends, foremost, from his expectations. If he expects that a price will rise, he will buy; if an investor expects that a price will fall, he will sell. These simple assertions are a main reason in the prediction of courses, because they are based on human expectations. Work of any technical analyst is determined by the "trend concept". Trend is certain direction of motion of price. Trendy are three prospects:

- "bull" (i.e. a price moves upwards),

- "bear" (i.e. a price moves downward),

- "lateral" (i.e. certain direction of motion of price is neither upwards nor downward). Long lateral trend is the precursor of strong motion of price in one or another side.

It is natural that in reality a price does not move on a straight line upwards or downward. A price moves by flights and falling, and on that, whether flights or falling prevail, it is possible to define "bull" or "bear" trend.

At an ascending or "bull" tendency (up) every subsequent peak and every subsequent slump is higher than previous. In other words, an ascending tendency must have the graph with consistently increasing peaks and slumps. Rising, or "bull" tendency, is determined as sequence of more high minimums of prices; i.e. "bulls" control a market and joggle prices higher.