The overall direction in which price is moving over a given time period.
A trend is the general direction of price. An uptrend consists of higher highs and higher lows. A downtrend consists of lower highs and lower lows. A sideways or ranging market has no clear direction. Trends exist on all timeframes and can be identified using price action, trendlines, or moving averages.
Trading with the trend is one of the highest-probability approaches in trading. The phrase “the trend is your friend” exists because trends tend to persist. Identifying the trend helps you filter trades, choose direction bias, and avoid fighting the market.
A stock makes a low at $40, rallies to $50, pulls back to $43, then rallies to $55. Each low is higher than the previous low ($43 > $40) and each high is higher ($55 > $50). This is a clear uptrend.
An uptrend with higher highs (HH) and higher lows (HL). The rising trendline connects the lows.