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:

How does a trader determine the direction of the market? Learn how to identify the market conditions to help you determine price movement.
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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.


number_1 - Higher lows
number_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.


number_1 - Lower lows
number_2 - Lower highs

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