Most experienced financial market participants recognize trends in the market offer the most effective options to profit. When a trader begins using charts for technicals in the financial markets, the existing trend is first sought out and confirmed before moving on to a deeper look at the market. Financial markets behavior and external influences all play a defining factor on which way the stock market is presently trending. Learning to recognize these trends inside the equity markets is one of the most important to profitability of a trader. Moreover, identification of the trend must be made before the trader can utilize them in his trading plan. Emini futures also rely on trends.

A uptrend in the stock market is represented as a succession of highs higher than the preceding days and lows higher than previous days. The trend is considered unbroken until such point a preceding low point is breached and serves as notification to the stock trader the existing upward trend may be in danger of coming to an end. Stock traders identify the downward trend when a sequence of lows lower than previously become visible along with a succession of lower highs as formerly recorded on the chart. Downward trends stay intact until a penetration occurs of a prior high on the stock chart. A penetration of a preceding high or a previous low does not categorically imply the trend is shifting direction and finished. It only serves as a alarm to the trader the established trend may be changing.

Market understanding and recognition of trends inside the equity markets is the basis of financial market analysis. The stock trader require an awareness of how these analysis relate with the process of entrance and exit of orders inside the financial markets Only by examination and study will the inexperienced equity investor turn out to be expert at knowledge of trends within the markets utilizing stock market analysis. Likely future direction is what expert stock traders plan to determine through the detection of the present trend and why market analysis is such a strong instrument.  Technical analysis and establishment of the trend will more than likely be the where the trader will expend much of his time, largely during after market close.. This after hours analysis will help the stock trader determine and formulate informed predictions of likely stock market direction.

Recent market movement as displayed on the chart can be important to approximate future price movement and probable places of execution for likely stock trades. Once the present trend has reached a level of conclusion, past history of market movement can help the trader in defining where the market is apt to go.  The previous movement of the market holds likely profit as the existing trend nears conclusion since prior history can divulge areas of potential order entry for counter trend trades.. Positive technical analysis and identifying the trend helps unlock likely profits for the trader.  It is essential that the trader set aside time to understand how the trend affects the equity markets in order to make an educated estimation of probable upcoming development.