Trend

A trend is the general direction in which an asset's price is moving. Trends can be upward (uptrend), downward (downtrend), or sideways (range-bound).

• Uptrend: Characterized by higher highs and higher lows.
• Downtrend: Characterized by lower highs and lower lows.
• Sideways Trend: The price trades within a relatively narrow range.

Identifying the trend is a fundamental aspect of technical analysis. Trend-following is a popular trading strategy where traders aim to profit from buying in uptrends and selling in downtrends. Indicators like Moving Averages (SMA, EMA) and MACD are often used to identify and follow trends.