How to Spot a Trend
Reading price footsteps
▸ Story
Imagine price leaves footsteps on the chart.
Uptrend footsteps: each step is higher than the last.
Downtrend footsteps: each step is lower than the last.
Sideways footsteps: steps stay level.
Your job is not to predict the future. Your job is to read the footsteps price has already left.
If footsteps are climbing it's an uptrend. If they're falling it's a downtrend. If they're flat it's sideways. Spotting trends is simply noticing the direction of the footsteps.
★ Key idea
Trends are footprints showing where price has been walking.
✦ Quick quiz
1. What do uptrend footsteps look like?
2. What do downtrend footsteps look like?
3. What is your job when spotting trends?
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Wild and Wise
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