A trend is the broad path prices seem to be following over a stretch of time. An uptrend shows a series of higher levels overall. A downtrend shows lower levels. A sideways trend means prices are oscillating in a band without a clear climb or fall.
Key takeaways
- Trends describe the past and present path of prices. They do not promise the future will continue the same way.
- Short term noise can hide inside a longer term trend, so the time window you choose changes what you see.
- Many investors use simple tools such as moving averages only as aids, not as guarantees.
- Fighting a strong trend without a clear reason is a common way beginners lose money.