Core concept

Trend

The overall direction price is moving — up (higher highs and higher lows), down (lower highs and lower lows), or sideways.

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What it is

An uptrend is a staircase of higher highs and higher lows; a downtrend is lower highs and lower lows; a range has no clear direction. Trend is defined by structure, not by a single candle.

What it signals

'The trend is your friend' — trading in the direction of the prevailing trend puts probability on your side, while counter-trend trades need stronger evidence.

How to spot it

Connect the swing highs and lows, or use a moving average as a directional guide. Price above a rising average is a rough sign of an uptrend, and vice-versa.

One caveat

Trends exist on every timeframe and can conflict — the hourly can be up while the daily is down. Always know which timeframe you are trading and where the higher one is pointing.

Related terms

Market StructureMoving AverageBreak of Structure (BOS)Support & Resistance

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