Trend

A trend represents the overall direction of price movement over time and is fundamental to technical analysis. Uptrends are characterized by higher highs and higher lows, downtrends by lower highs and lower lows, and sideways trends by horizontal price movement. Trends exist across all timeframes, from minutes to years. The saying 'the trend is your friend' emphasizes trading with the prevailing direction. Trends are identified using trendlines, moving averages, and price action. They persist until a clear reversal occurs. Understanding trend structure, strength, and potential reversal points is crucial for timing entries and exits.