Trend
A sustained directional bias in price, built from a repeating pattern of highs and lows.
Also called: uptrend · downtrend · trending
In plain language
An uptrend is a sequence of higher highs and higher lows. A downtrend is lower highs and lower lows. When neither pattern holds, the market is ranging.
Trend is timeframe-dependent and often contradictory across timeframes. A market can be in a daily uptrend and an hourly downtrend at the same moment, and both readings are correct.
Trends end when the sequence breaks — an uptrend that fails to make a new high, then breaks the last higher low, has structurally changed.
Seen on a chart
Why it matters
Trend defines context. The same setup has very different odds depending on whether it is aligned with the larger structure or fighting it.
Common mistakes
- Reading trend on one timeframe and trading on another without checking both.
- Calling a trend over after a single counter-move.
- Assuming a strong trend must be due for a reversal.
Keep exploring
These concepts are connected. Understanding one usually makes the next one easier.
The pattern of highs and lows that describes whether a market is trending or ranging.
A swing high that exceeds the previous swing high, confirming upward momentum.
A swing low that breaks below the previous swing low, confirming downward momentum.
A straight line drawn along successive highs or lows to visualize a trend’s slope.
The average price over a set number of periods, recalculated as each new period closes.