Glossary entry
A trend is the prevailing direction of a price or other market measure over a chosen period. Traders may describe rising highs and lows as an uptrend, falling highs and lows as a downtrend, and mixed movement as a range. The description depends on time frame, smoothing method, and the observations selected.
Illustrative example
A share can rise over six months while falling during the latest week. Both descriptions may be accurate because they refer to different observation periods.
What to consider
A recognized trend can reverse or stall. Defining a trend after the event is easier than identifying it reliably in real time.
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