Core Concepts

Trend

General direction in which the price of an asset is moving

A trend represents the overall direction of price movement for an asset over a period of time. Trends can be bullish (upward), bearish (downward), or sideways (ranging). Identifying the prevailing trend is fundamental to trading.

How to Recognize

  • Sequence of higher highs and higher lows (uptrend)
  • Sequence of lower lows and lower highs (downtrend)
  • General direction of price movement
  • Multiple timeframe confirmation