Glossary · Technical Analysis

Trend

The general direction of price movement over time.

A trend is the market’s prevailing direction: up (higher highs and higher lows), down (lower highs and lower lows), or sideways (range-bound). Trends exist on multiple timeframes — a stock can be in an uptrend on the weekly chart and a short downtrend on the hourly chart.

Many trading frameworks try to trade with the larger trend rather than against it. Recognizing trend does not predict how long it lasts; it only describes structure so far.

Example

Over six months a stock rises from $20 to $35 while pullbacks stay above previous lows — a classic uptrend structure.