A trend is a sustained direction of price movement for an asset (such as a stock, currency, or commodity) over a certain period. Trends can be upward, downward, or sideways and are an important part of market analysis.
Types of Trends:
Uptrend: Characterized by a sequence of higher highs and higher lows. This means the asset’s price is rising, with each new peak being higher than the previous one, and each new low being higher than the last.
Downtrend: Characterized by a sequence of lower highs and lower lows. In this case, the asset’s price is falling, with each new peak being lower than the previous one, and each new low also being lower than the last.
Sideways Trend: Price moves within a horizontal corridor without a clear upward or downward direction. The price oscillates within certain support and resistance levels.
