Chart Reading : Lesson - 3 (Part : 1)

One of my previous post, I discussed regarding the Market Trend and I showed you how to detect the market trend by Bollinger Band. The Link is http://dse-analysis.blogspot.com/2011/10/market-trend.html. Throughout our Lesson - 3, we will detect the Market Trend manually. A Chart Reader should have a ability to detect the market trend manually.

Please see the below Chart :

(Pls. click on the image to enlarge)

If you find that price is forming Higher High (HH) and Higher Low (HL) one after another, you can say it Up Trend/Bullish.

Precondition of Higher High (HH) and Higher Low (HL) : The HH or HL must be above the previous HH or HL. Please check it with the above chart. by JC