The Basis of Technical Analysis
Chart 5: Trend Analysis and Timing

Markets do not move up and down in straight lines. The direction of a market is either bullish (upward) or bearish (downward) or simply neutral (sideways). Within each trend, the market develops counter-trend movements. In general, the markets move in waves, which is why you have to catch a wave at the right moment to take part in its movement.

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