Trend
The predominant direction of price over time: up (higher highs and higher lows), down (lower highs and lower lows) or sideways (no clear direction).
The trend is the predominant direction of price over time. Identifying it is the first step of almost all technical analysis, summed up in the classic maxim: "the trend is your friend".
There are three types. An uptrend is marked by a sequence of higher highs and higher lows — the market makes rising peaks and troughs. A downtrend is the opposite: lower highs and lower lows. And a sideways trend (consolidation) happens when price swings within a range, with no defined direction.
To identify the trend, traders use trendlines connecting the lows (in an uptrend) or the highs (in a downtrend), plus moving averages: price above a long average suggests an upward bias; below it, a downward one. The timeframe matters too — there can be an uptrend on the daily chart and a downtrend on the 5-minute one.
The logic is probabilistic: trading with the trend tends to have a higher win rate than trying to guess tops and bottoms against the dominant move. Spotting when the trend weakens or reverses is what separates the beginner from the experienced trader — and that is where divergences and breakouts of support or resistance come in.