Trend
The persistent directional bias of price over a defined timeframe — up, down, or sideways.
A trend is the market's dominant direction over a chosen lookback. Dow Theory defines an uptrend as a series of higher highs and higher lows; a downtrend as lower highs and lower lows. No trend lasts forever — they alternate with ranges and reversals.
Trend traders align entries with the prevailing direction and let winners run. Counter-trend traders fade exhausted moves. Knowing which game you are playing is non-negotiable.
Related Terms
Channel
Two parallel trendlines containing price action — an upper resistance line and a lower support line defining the trend's corridor.
BeginnerDowntrend
A market structure defined by lower highs and lower lows, reflecting sustained selling pressure.
BeginnerGap
A price jump between one period's close and the next period's open, leaving a void on the chart with no trades executed.
IntermediateGolden Cross
The 50-day moving average crossing above the 200-day moving average — a widely-watched long-term bullish signal.
IntermediateHeikin Ashi
A modified candlestick chart that uses averaged OHLC values to filter noise and make trends easier to see — at the cost of losing real-time price accuracy.
IntermediateHigher High
A peak that exceeds the prior swing high — one half of the structural definition of an uptrend.
BeginnerHigher Low
A trough that forms above the prior swing low — the second structural requirement of a defined uptrend.
BeginnerLine Chart
A chart connecting closing prices with a continuous line — the simplest representation of price history over time.
BeginnerLower High
A rally peak that fails to reach the prior swing high — the second structural requirement of a defined downtrend.
BeginnerLower Low
A trough that undercuts the prior swing low — one half of the structural definition of a downtrend.
BeginnerMoving Average
The average closing price over N periods, updated each bar — smooths noise and exposes the underlying trend direction.
BeginnerMulti-Timeframe Analysis
The practice of reading price action across multiple timeframes to align the higher-degree trend with lower-timeframe entries.
IntermediatePrice Action
The study of raw price movement — candlestick patterns, swings, and structure — without relying on lagging indicators.
BeginnerRetracement
A partial price reversal within a larger trend, measured as a percentage of the preceding impulse move.
BeginnerReversal
A sustained change in the direction of the prevailing trend, not just a temporary counter-move.
IntermediateSwing High
A candle or bar whose high is higher than both the preceding and the following candle's highs — a local price peak.
BeginnerSwing Low
A candle or bar whose low is lower than both the preceding and the following candle's lows — a local price trough.
BeginnerTimeframe
The duration each candle represents — from 1-minute to monthly — defining the granularity at which price action is analysed.
BeginnerTrend Following
A strategy that enters in the direction of the established trend and rides it until structural evidence of a reversal appears.
IntermediateTrendline
A straight line drawn through successive swing highs (downtrend) or swing lows (uptrend) to visualise the trend's slope.
BeginnerUptrend
A market structure defined by a sequence of higher highs and higher lows, signalling persistent buying pressure.
Beginner