Home/Abbado: Learn | Blogs

Abbado: Learn | Blogs

Sideways TrendWhen a tight trading range forms with no clear directional bias, prices are moving sideways between support and resistance. Breakouts above resistance or below support signal the resumption of an uptrend or downtrend.Trend lines connect significant swing highs or lows over time to visualize the trend angle. Steeper trend lines indicate stronger trends, while …

MACD (Moving Average Convergence Divergence)This popular oscillator measures the difference between two exponential moving averages to identify trend direction and strength. Signal line crossovers of the MACD line signal trend changes.Properly interpreting indicators within the context of the price chart can provide valuable insight into the market’s psychology. Traders must understand how each indicator works …

Factors that Impact Market TrendSeveral macro factors influence whether an asset trends or ranges:Economic reports like inflation, GDP, employment data can spark volatility and trends for currencies and commodities.Geopolitical events such as elections, conflicts, and policy changes move markets and sometimes lead to prolonged trends.Liquidity/funding conditions regulated by central banks. Low rates fuel trends while quantitative tightening risks …