Trend

A trend is the overall direction of price movement. An uptrend is defined by a series of higher highs and higher lows — each peak is higher than the last, and each dip is shallower. A downtrend is the opposite: lower highs and lower lows. Markets can also be trendless (ranging), moving sideways within a defined range.

Trend identification is one of the most fundamental skills in trading. The phrase "the trend is your friend" exists for a reason — trading in the direction of the prevailing trend has a statistical edge because you're aligned with the dominant market force. Trying to pick exact tops and bottoms (counter-trend trading) is possible but significantly harder.

Trends exist on every timeframe, and they can conflict. The daily chart might show an uptrend while the 1-hour chart shows a downtrend. Understanding this multi-timeframe context is important: most experienced traders identify the trend on a higher timeframe and look for entries on a lower timeframe that align with the bigger picture.