Trends

A trend is the general direction of market movement or an asset’s price.

Types of Trends

• Uptrend – a sequence of rising lows and highs. Each new low is higher than the previous one, and each new high also exceeds the previous one.

• Downtrend – a sequence of declining highs and lows. Each new high is lower than the previous one, and each new low is also lower than the previous one.

• Sideways trend – a horizontal price movement within a specific range without a clearly defined trend. Price lows and highs remain at approximately the same level.