Analyse Trading
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Trend

A trend is the dominant direction of price. An uptrend makes higher highs and higher lows; a downtrend does the opposite.

Dow's classic definition is still the most useful: an uptrend forms ever higher peaks and troughs, a downtrend ever lower peaks and troughs. When neither appears, the market is ranging.

A trend depends on the timeframe. EUR/USD can be bearish on the daily chart and bullish on H1 during a bounce. Always start with the higher timeframe.

Trading with the trend generally improves your odds, because you are going with the dominant flow. The end of a trend is often signalled by a break in structure: a lower low in an uptrend, for example.

The full lessonTrends and trendlines: identifying the market's directionHigher highs and higher lows, a well-drawn trendline, a ranging market: learn to recognise the direction of the market and how to trade in the same direction.← Full glossary