What is Trend Transitions?
Up-trend to downtrend,
downtrend to uptrend,
up/down to sideways,
sideways to trending.
You already know that uptrend is a series of higher SHs and SLs, downtrend is a series of lower SLs and SHs. Sideways is a contraction between a support and resistance. But the transition from one trend structure to the other is not an easy task to do in realtime. But unfortunately, the whole trading completely depends on this. So, you must work on this. There is no other way.
Up-trend to downtrend,
downtrend to uptrend,
up/down to sideways,
sideways to trending.
You already know that uptrend is a series of higher SHs and SLs, downtrend is a series of lower SLs and SHs. Sideways is a contraction between a support and resistance. But the transition from one trend structure to the other is not an easy task to do in realtime. But unfortunately, the whole trading completely depends on this. So, you must work on this. There is no other way.
I have a suggestion for you. You might have heard this saying,
” You will go to the place where you want to only when you leave the place where you are right now.”
The same is true for trend structure. A trend is said to be transitioned into a new trend structure only when the previous trend structure in not intact anymore in the timeframe you are looking at. Let us say, you were in a ranging environment, that gave a upside breakout and moving up without completing the transition process , that range is still intact and the range boundaries are significant until the trend transition completes. Also, I don’t treat that as an uptrend (even if forms higher SHs and SLs) as the previous sideways range is still intact.
