What is a market trend in trading?

    A market trend is the tendency of a financial market to move in a particular direction over time. Traders identify market trends using technical analysis.

    A market with an upwards trend is also called a bull market. Respectively, a market in a downtrend is called a bear market.

    If there is neither an upward nor a downward trend on an asset, the market is said to be ranging.

    Learn how to determine the future development of a market with chart analysis:

    Which direction — up or down?

    When the price keeps making higher highs and higher lows, it is considered to be in an uptrend, as illustrated by the chart below.

    (1) – Higher lows

    (2) – Higher highs

    If the price keeps making lower lows and lower highs, it is considered to be in a downtrend, as indicated by the chart below.

    (1) – Lower lows

    (2) – Lower highs