Home › Glossary

What is Trend?

Updated October 18, 2026

A trend is the general direction price is moving over time, up, down or sideways.

An uptrend makes higher highs and higher lows. A downtrend makes lower highs and lower lows.

Many strategies try to trade with the trend because it's like swimming with the current.

Trends end though, so you still need stops.

Example

Gold keeps making higher lows for weeks, so traders call it an uptrend.

Questions people ask

How do I spot a trend?

Zoom out and look at highs and lows, or use a moving average.

Do bots follow trends?

Many do. Trend bots tend to struggle in sideways markets.

Related

Fresh from the site

Rather have AI trade for you?Get the free guide on hands free AI trading accounts. Send me the free guide →

Work out your own number with the quit your job calculator, or take the passive income quiz.

All guides · Answers · Glossary · Compare · Web stories · Wallpapers · Privacy · Terms