Chart Reading : Lesson - 3 (Part : 2)

In our Chart Reading : Lesson - 3 (Part : 1), we discussed regarding the identifying Up Trend/Bullish. Today, we will discussed regarding the identifying Down Trend/Bearish. Please see the below Chart :

(Pls. click on the image to enlarge)

After a bullish or Up Trend, if you find that price is forming Lower Low (LL) and Lower High (LH) one after another, you can say it Down Trend/Bearish.

When price form a Lower Low (LL), please don't be Panicked for Sell. Market always gives you a chance for Sell by forming Lower High (LH). Yes, the Lower High (LH) is your EXIT/Sell point.

Precondition of Lower Low (LL) and Lower High (LH) : The LL or LH must be below the previous LL or LH respectively. Please check it with the above chart. by JC