Understanding market direction begins with knowing whether price is moving with intent or simply drifting sideways. If you're still getting familiar with market behavior, start with What Is Trading?.
Trends and ranges form from order flow. Market orders fuel directional moves; balanced limit orders create hesitation. For that foundation, explore How Orders Work.
Spread behavior shifts depending on market conditions. Tight spreads hint at compression; widening spreads often accompany directional pushes. You can see how this works in Understanding the Spread.
Liquidity clusters differently in trends versus ranges. Ranges build liquidity on both sides; trends consume it in one direction. For clarity on this dynamic, visit What Is Liquidity?.
Candlestick behavior reveals whether price is gathering strength or stalling. Expanded bodies show trend pressure; indecision candles signal range conditions. Study this through Candlestick Anatomy.
Control matters. Trends reflect clear bullish or bearish dominance, while ranges show indecision. For directional reading, explore Bullish vs Bearish.
Structure gives the most obvious clues. Trends create higher highs or lower lows; ranges bounce between barriers. To understand these barriers, see Support & Resistance.
Volume confirms or denies direction. Strong volume often supports trends, while weak volume suggests consolidation. Build that signal-reading with Volume 101.
Breakouts define transitions. Some spark trends; others fail and trap traders. To recognize the difference, explore Breakouts vs Fakeouts.
Momentum is often the deciding factor. Trends feed on sustained momentum; ranges lack it. Learn how to spot these shifts in Momentum Basics.
Psychology changes between environments. Trends trigger fear of missing out, while ranges lure traders into false breakouts. For emotional awareness, explore Psychological Trading Pressure.
Patterns reveal what the market is preparing for. Many patterns only gain meaning when you know if you're in a trend or a range. For pattern clarity, visit Common Chart Patterns.
Volatility helps filter environment shifts. Calm conditions often precede trends; chaotic spikes frequently produce traps. Learn how this works in Volatility Basics.
Once you can identify trends and ranges, you can build a strategy around both. For structured development, explore Building a Trading System.
To test your broader skills, try the Trading Quiz Hub.