Glossary

Trend

Price advancing in a sequence of higher lows/highs (uptrend) or lower lows/highs (downtrend). With no direction, there is a range.

Trend depends on the timeframe: an uptrend on the 4-hour and a downtrend on the 5-minute can both be valid at once. Trading in the direction of the higher timeframe (trend following) is the basic filter of most strategies.

A trend changes with a structure break (the last low/high being taken out). The slope of moving averages and price's position relative to the average are practical trend filters.

Related terms

Where it appears in the guides

Guides whose text uses this term; most frequent first.