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Trend and Structure

Trend

Also called: Market trend

// Definition

A trend is the overall direction in which price is moving: up, down or sideways.

Trend explained on a labelled 3D candlestick chart
Uptrend: HH and HL, shown on an illustrative 3D chart. Tap the image to zoom.

Explained simply

Markets rarely move in a straight line. Even in a strong uptrend, price rises in waves with pullbacks in between. The trend is the direction those waves are heading.

Identifying the trend first is one of the most useful habits in trading, because trades in the direction of the trend tend to have the wind behind them.

Tip

Decide the trend on a higher timeframe first, then look for entries on a lower one.

EP 03: Trend and Trendlines: How to Draw Them Learn it on a real chart · EP 03Trend and Trendlines: How to Draw ThemWatch the free lesson →

Related terms

Uptrend Downtrend Sideways Market Market Structure

For education only, not financial advice. Trading is risky and you can lose money.

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