Lesson 02

Trend and range describe what has happened.

A directional sequence can later become a range. The label depends on the sample, the anchors and the timeframe you selected.

Hypothetical rising sequence transitioning into a horizontal range
Same hypothetical sketch as the course cover, with descriptive guides added.

A descriptive checklist

  1. Choose the observation window

    State the interval and how much history is visible. A label without that boundary is incomplete.

  2. Mark repeated highs and lows

    Do later peaks and troughs generally sit above, below or near earlier ones?

  3. Name the structure modestly

    “Rising in this sample” is more precise than “will continue rising”.

  4. Look for a change of structure

    A trend can flatten, reverse or become a range. The earlier label does not bind later observations.

Trend

A directional pattern in the selected sample, often described with successive highs and lows.

Range

Repeated observations inside approximate upper and lower areas, without a sustained directional sequence.

A description is not a signal.

Calling the left side of the sketch an uptrend does not tell you what the next point will be.