Technical analysis

Trend

Defined in 1 lesson · Updated October 17, 2026

Definition

A trend is a sustained move in one direction. An uptrend makes higher highs and higher lows, and a downtrend makes lower highs and lower lows. Trading in the direction of the higher-timeframe trend is one of the most common filters traders use.

Example

Say a stock’s daily chart shows swing highs at $40, $44 and $47 and swing lows at $37, $41 and $43: an uptrend. A trader who uses the higher-timeframe filter would skip short setups on the 15-minute chart while that sequence holds. A daily close below $43 would break the run of higher lows.

Hypothetical numbers, for illustration only.

A chart labeled with this section's terms: a range between green support and red resistance at $50; a false breakout that trades up to $50.20 and closes at $49.85; a breakout that closes above $50; a retest where old resistance acts as support and the zone turns green; then a pullback and an uptrend of higher highs and higher lows.

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