When trading on the Financial Markets, traders and investors determine if the price of a financial instrument is going to rise or fall.
If you believe that the price is going to rise, you open a Buy Order which is also called opening a "Long" position.
If you believe that the price is going to fall, you open a Sell Order which is also called opening a "Short" position.
When looking at the price chart there are three (3) things that can be happening to the price of the selected financial instrument.
The price can be rising which means that there is an UP TREND.
The price can be falling which means that there is a DOWN TREND.
The price can be traveling sideways with little or no changes in the price which means that there is NO TREND and the market is FLAT.
A trend identifies the direction of the price movement.
Take note: An Up Trend is also called a "Bullish Trend" because Buyers on the Financial Markets are called "Bulls". A Down Trend is also called a "Bearish Trend" because Sellers on the Financial Markets are called "Bears".
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