If signals from both the EMA and the MACD histogram point in the same direction, both inertia and momentum are working together toward clear uptrends or downtrends. |
The inverted head and shoulder is the opposite of the head and shoulder and is typically seen in downtrends. |
A rising wedge is generally considered bearish and is usually found in downtrends. |
Indeed, uptrend periods follow downtrends, with an ensuing reduction of the annual variance as the horizon lengthens. |
In downtrends, trend-following indicators suggest selling short, but oscillators become oversold and issue signals to buy. |
One can benefit from both uptrends and downtrends in the foreign exchange market. |