Quick Finance Tip - Technical Analysis and Trends

Trends are one of the most important aspects of Technical Analysis. This is based on the observation that market participants tend to act in groups and that trends last for some time. Conceptually, during uptrends, demand is greater than supply, where traders are willing to pay higher prices for the same asset. In downtrends, supply is greater than demand, where sellers will accept lower prices to exit long positions. Lastly, in flat or no trends, there is a relative balance between supply and demand.