The concept
An uptrend makes higher highs and higher lows; a downtrend makes lower highs and lower lows. Sideways markets range.
Why it matters
Identifying direction frames every other analysis.
How markets interpret it
Trends exist on each timeframe and can conflict between them.
Key takeaways
- Uptrend = higher highs and higher lows.
- Trends end without warning.
Knowledge check
Higher highs and higher lows describe…
Key terms · hover or tap for a definition