#PriceTrendAnalysis

A trend is the direction in which prices are moving, based on where they have been in the past. Trends are made up of peaks and troughs. It is the direction of these peaks and troughs that constitutes the trend of a market. Whether these peaks and troughs are moving up, down, or sideways indicates the direction of the trend.

3 Trend Directions

1. An uptrend is made up of rising peaks and troughs. Higher highs and higher lows.

2. A downtrend is made up of falling peaks and troughs. Lower highs and lower lows.

3. A sideways trend (consolidation) occurs when prices move sideways in a horizontal range.