Skip to main content
market.news — Markets without borders
Technical Analysis

Trend

The general direction of a market or security — uptrend, downtrend, or sideways.

In depth

Defined by sequence of higher highs/higher lows (uptrend) or lower highs/lower lows (downtrend). "The trend is your friend until it ends." Trend-following strategies underperform in choppy markets but capture big multi-month/year moves.

Frequently asked about Trend

What is Trend?

The general direction of a market or security — uptrend, downtrend, or sideways. Defined by sequence of higher highs/higher lows (uptrend) or lower highs/lower lows (downtrend). "The trend is your friend until it ends." Trend-following strategies underperform in choppy markets but capture big multi-month/year moves.

Why does Trend matter for investors?

In technical analysis, Trend is one of the building blocks investors use to compare opportunities and assess risk. Understanding it helps you read research notes, earnings reports, and market commentary without getting lost in jargon.

How is Trend used in practice?

Defined by sequence of higher highs/higher lows (uptrend) or lower highs/lower lows (downtrend). "The trend is your friend until it ends." Trend-following strategies underperform in choppy markets but capture big multi-month/year moves..

Recent news mentioning Trend

Related terms

Looking for more financial terms?

Browse Full Glossary →