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Generally in a chart trend, there are three important types that need to be observed. They are namely short, intermediate and long-term (primary) trends.
Types of Important Trend
Generally in a chart trend, there are three important types that need to be observed. They are namely short, intermediate and long-term (primary) trends.
Short term trend usually last from 3 to 6 weeks.
Intermediate-term trends usually last from 6 weeks to 9 months.
Long-term trends usually last from 9 months to 2 years.
Peak and Trough
In an up trending chart, correction can be seen along the way. This short correction will not last and the uptrend resumes and continues to rally. Based on this formation, hence formed the peaks and troughs.
Current price higher than the predecessor, a peak is formed.
Current price lower than the predecessor, a trough is formed.
In order to effectively recognise an upward trend, the peak has to be consistently higher than predecessor peak and its trough also has to be higher than predecessor trough.
For a downward trend, the peak has to be consistently lower than predecessor peak and the trough also has to be lower than predecessor trough.
Support and Resistance
Support and resistance are formed where the probabilities favour a temporary halt in the existing trend. An example of the support and resistance are shown below.
Support and resistance are formed where the activities between bull and bear are most significant.
When support is formed, this means that bull has over powered the bear and hence prices are unable to go lower.
Likewise for resistance, it means that bear has over powered the bull and hence prices are unable to go higher.
Support and resistance may consolidate and continue to move in one direction without violation.
Hence, a channel is formed. This channel will indicate the prevailing trend direction.
The more attempts the prices closed at support and resistance, the more significant are the support and resistance in that channel.
Once the support or resistance is broken, likelihood the trend will continue with the break up or down and thus formed a new price direction.
Price Pattern
The patterns formed are very useful as it reveals important information to trader regards to the prevailing trend direction. The following are some useful price patterns:
1. Triangles
2. Flags
3. Pennants
4. Wedges
5. Double tops
6. Double bottoms
7. Head-and-shoulders formations
8. Reverse head and shoulders
Triangles
There are three types of triangle price pattern: Symmetrical, ascending and descending triangle.
Symmetrical triangle
This is formed from two converging up or downtrend lines which join a series of declining tops and rising bottoms and eventually heading towards a common trend direction.
Consolidation are happening and waiting for break up/down.
Volume is observed to be decreasing.
Any direction that broke out from the consolidation will be significant.
Ascending triangle
This is formed when there is a resistance to the price level that the trend is trying to break with a slope of higher lows.
When price finally breaks the resistance, it will be significant and will resume from the break up.
Descending triangle
This is formed when there is a resistance to the price level that the trend is trying to break with a slope of lower highs.
It formed a support when prices are unable to go lower.
The eventual break down will be significant.
Flags
This price pattern can be seen in a rising and falling market.
It is formed with small pattern confined within two parallel trend lines which looks like a channelling.
Seldom last longer than 3 weeks.
Its volume will drop tremendously and ready for break out.
Once the breakout occurs, the volume will expand.
The flag is formed in a direction against the prevailing trend be it in a falling or rising market.
Pennants
It is formed by two parallel lines converging heading in opposite slop direction to form a triangle.
Consolidation are happening and waiting for break up/down.
Volume decreases even more as the pattern progresses to the formation.
Break out from the pennant pattern will determine the next price direction.
Wedges
Form triangles using two converging lines and volume decreases as the formation progresses.
Both converging lines are heading in the same direction.
Wedges in an upward trend are formed by heading downwards.
Wedges In a downward trend are formed by heading upwards.
The breakout from wedges usually resumes the main trend.
Double Tops
This formation consists of two final peaks and a valley in between both peaks.
Does not matter which peak is higher.
Second peak must be accompanied with significant lesser volume than the first peak.
Volume will pick up again after forming of the second peak when prices have successfully broken the valley line.
Double Bottoms
This formation consists of two final troughs and a peak in between both troughs.
Does not matter which trough is lower.
Second trough must be accompanied with significant lesser volume than the first trough.
Breakout will be considered successful when prices successfully broken above the prevailing rally with volume increased significantly.
Head-and-Shoulders
This formation is a potent warning sign of a reversal pattern.
It is formed at the top of the trend.
It consists of first lower peak (left shoulder), final rally being the highest peak (head) and followed with second lower peak (right shoulder).
Take note that the volume on the left shoulder and head should be higher than the right shoulder.
Construct a trend line joining the low of both left and right shoulder. This is known as the neckline.
Pattern is completed when the prices successfully breaks below the neckline.
Reverse Head and Shoulders
This formation is a potent warning sign of a reversal pattern.
It is formed at the bottom of the trend.
It consists of first higher trough (left shoulder), final decline being the lowest trough (head) and followed with the second higher trough (right shoulder).
Take note that the volume is lowest at the right shoulder.
Construct a trend line joining the high of both left and right shoulder. This is known as the neckline.
Pattern is completed when prices successfully breaks above the neckline.
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Alex,U're absolutely correct. 
"When matters are unclear,be extra cautious.Take 1 step at a time. Success emerges slowly." - MaiTreYa 's 18th 
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