Trend
Also called: uptrend, downtrend, market structure
The direction of prices over a period, defined by the sequence of swing highs and lows on a chosen timeframe.
An uptrend makes higher highs and higher lows; a downtrend makes lower highs and lower lows. Trends depend on the timeframe, are confirmed only after several swings, and end without warning; a long trend is not more likely to continue for that reason alone.
Learn more in these lessons
- Trends and market structureHow do you tell whether a share is in an uptrend, a downtrend or a range?
- Moving averagesHow are moving averages calculated, and what do they really tell you?
- The relative strength index (RSI)How is RSI calculated, and does an RSI above 70 mean a fall is coming?
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