The whole point of my technical analysis is to try to spot trends. The most basic definition of an uptrend is when you get a series of higher highs and higher lows; the opposite is true for a downtrend. So that’s what I’m looking for.
If the market likes a currency and it is rising (the street calls this bullish) the currency is in an uptrend (see Figure 2.3), when it doesn’t like a currency and it is falling (bearish) the currency is in a downtrend (see Figure 2.4). Usually I want to buy strong currencies and sell weak ones – so buy into an uptrend and sell in a downtrend.