What is a Trend in Forex Trading?
Trend
Forex Trading Glossary
Quick Answer: A trend is the general direction a market is moving. Uptrends show higher highs and higher lows, downtrends show lower highs and lower lows.
What is a Trend?
A trend is the prevailing direction of price over a period of time. Uptrends feature higher highs and higher lows; downtrends feature lower highs and lower lows.
Analyzing Trends
- Structure: Use swing highs and lows to define direction.
- Moving averages: Slopes and crossovers reveal momentum.
- Trendlines/channels: Visualize trajectory and potential support/resistance.
- Multiple timeframes: Align trades with higher timeframe trends.
Related Terms
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