The direction of the trend is absolutely essential to trading and analyzing the market. In the Foreign Exchange (FX) Market, it is possible to profit from both UP and Down movements, because the buying and selling of one currency is always linked to another currency e.g. BUY US Dollar SELL Japanese Yen.
Up Trend
As the trend moves upwards the US Dollar is appreciating in value.
Down Trend
As the trend moves downwards the US Dollar is depreciating in value.
Sideways Trend
Prices are moving within a narrow range (The currencies are neither appreciating nor depreciating)
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