Trend
A trend is a sustained directional tendency in price over a chosen timeframe, commonly described as upward, downward, or sideways.
Analysts identify trends through sequences of highs and lows, moving averages, trend lines, or other rules. One instrument can be in an uptrend on a daily chart and a downtrend intraday, so timeframe must be stated. Trends eventually weaken or reverse abruptly without advance warning, and confirmation methods lag, making disciplined sizing and exit criteria more reliable than assuming continuation.
Related terms
