Notices

Trend

From Traderpedia

Definition:
A sustained directional move in price


An up trend is a price formation featuring a minimum of one or more higher lows and one or more higher highs (advancing). A down trend is a price formation featuring a minimum one or more lower lows and one or more lower highs.


image:downtrend1.JPG


Markets tend to trend about 20%-30% of the time. When they are not trending they are said to be consolidating or congesting, i.e prices are confined by a range and not directional.

Obviously time frame is an important consideration. A market might be trending up on a one minute chart, trending down on a 20 minute chart and consolidating on a daily chart simultaneously. In this way the market is fractal.

Retrieved from "http://www.trade2win.com/traderpedia/Trend"