Three types of trends exist in a direction of movement of the price:

•  Ascending, "bull" (up trend) - movement of the price upwards.

•  Descending, "bear" (down trend) - movement of the price downwards.

•  Lateral (flat, whipsaw, sideways trend) - there is no obvious movement of the price.

Also trends differ on duration:

•  The long-term trend (basic) - proceeds from six months up to several years.

•  The intermediate term trend (intermediate) - proceeds from two weeks to about six months .

•  The short-term trend (small) - from one day up to approximately two weeks.

There are certain laws of movement of the price which can be formulated as follows:

•  The operating trend with greater probability will be prolonged, rather than change direction.

•  The trend will move in the same direction, until it "get tired".