What Is Trend? Meaning & Example
Definition
A trend is the general direction in which a price is moving over time. Uptrends make higher highs and higher lows, while downtrends make lower highs and lower lows.
Related terms
A moving average is the average price over a set number of past periods, updated as new data arrives. It smooths out noise to help show trend direction.
SupportSupport is a price area where buying interest has tended to stop declines. Traders watch support levels for potential bounces or breakdowns.
ResistanceResistance is a price area where selling pressure has tended to stop advances. A break above resistance can signal a new move higher.
What is Trend?
A trend is the general direction in which a price is moving over time. Uptrends make higher highs and higher lows, while downtrends make lower highs and lower lows.
Can you give an example of Trend?
A chart with each peak and dip a little higher than the last shows an uptrend.