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Trend

A trend is the general direction in which price is moving over time. An uptrend is marked by a series of higher highs and higher lows, a downtrend by lower highs and lower lows, and the absence of either is often described as a sideways or trendless market.

Trends are observed across different timeframes, and a market can be trending on one timeframe while ranging on another. Tools such as moving averages and market-structure analysis are commonly used to describe whether a trend is intact.

Trends persist until they don't: they can continue, weaken, or reverse, and recognizing a trend is a description of past and current behavior rather than a forecast. Understanding the prevailing trend provides context for interpreting other data, without implying any particular action.

Related terms
Market StructureMoving AverageBreakout
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Trading with the Trend
Information and education, never financial advice. The Brief · The Edge