Trend Analysis — Explained in Plain Language
7/6/2026
concepts
basics
beginner
The general direction of price: up (higher highs/lows), down (lower highs/lows), or sideways.
In plain words
A trend is like a current in a river — it's easier to swim with it than against it.
Level by level
Beginner
If price keeps making higher peaks and higher dips, the mood is upward. Lower peaks and dips mean downward.
Intermediate
Trends reflect persistent imbalance between buyers and sellers. 'The trend is your friend' until structure breaks.
Advanced
Trend is defined by swing-structure (HH/HL vs LH/LL); trend-following exploits autocorrelation while reversals exploit exhaustion.
Key takeaways
- Uptrend = higher highs and higher lows.
- Downtrend = lower highs and lower lows.
- Trade with the trend until it clearly breaks.
Memory tip: Higher highs up, lower lows down.
Keep going
_Educational content only — not financial advice. Historical behaviour never guarantees future results._
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