Definition
An uptrend shows repeated upward progress, often through higher highs and higher lows. A downtrend shows repeated downward progress, often through lower lows and lower highs. A sideways market fails to make sustained progress and rotates between boundaries. Trends are easier to see after they exist than while they are forming, which is why chasing is so common.
Trend types and market context
Clean trends have shallow pullbacks, broad participation, and acceptance at new prices. Weak trends have overlapping candles, deep pullbacks, and failed breaks. News-driven trends can move fast but may reverse when the catalyst is absorbed. Higher timeframe trends can contain lower timeframe pullbacks that look like reversals.
Visual suggestion: show three panels: clean trend, choppy trend, and range pretending to trend.
Workflow
- Classify the higher timeframe first.
- Mark the most recent meaningful high and low.
- Ask whether pullbacks are shallow or deep.
- Check whether breaks hold or fail.
- Define the level that would make the trend read wrong.
- Avoid entering solely because price has already moved far.
Common mistakes
The most common trend mistake is late entry after the obvious move. Another is calling every pullback a reversal. Trend trading requires patience because the best location is often uncomfortable: after a pullback, near invalidation, before confirmation feels emotionally easy.