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What is Trend?

An uptrend is commonly described by higher swing highs and higher swing lows, a downtrend by lower highs and lower lows, and every trend contains moves against itself. The same asset can trend up on a weekly chart and down on an hourly one, so a trend claim needs a timeframe and a rule for confirming swings. A trend change is a process of structural evidence, not one red candle; Academy's lessons describe it as intact, weakening, invalidated or transitioning.

Also called uptrend, downtrend, price trend

Always attach a timeframe and a swing rule to the word trend.

Describing swings on a daily chart (illustrative)

Swing highs
110 → 115 → 119
Swing lows
100 → 104 → 108
Next pullback low
109
Pullback low vs last higher low
109 > 108Uptrend intact: the pullback held above the last higher low of 108; a break below it is what this reading would treat as invalidation.

Learn it in a lesson

All terms