What are uptrends in trading?
When the price of anor a increases steadily over a period of time, it is said that the price is in an uptrend. The opposite of an uptrend is a . If the price is neither in and uptrend nor a downtrend, it is called a .
Even if theis clearly up, there will still be fluctuations in price. Thus, a general uptrend will also incorporate temporary decreases in price.
This means that when the price of an asset moves in a particular direction, it does not move in a straight line. There may be small peaks and troughs: highs and lows within the trend. An uptrend can therefore be identified by continuously higher highs and higher lows.
The chart below is an example of price in an uptrend:
number_1 Higher lows
number_2 Higher highs
Manyare based on . One example is our forex beginner strategy:
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