★ My

Encyclopedia › Trading terms ›

Trend

In one line: The general direction a price has been moving: up, down or sideways.

An uptrend is a staircase going up: higher highs and higher lows. A downtrend is the staircase going down. Sideways is a corridor.

A trend describes the past. Whether it continues is the big question. Brock, Lakonishok and LeBaron (1992) looked at the Dow from 1897 to 1986. Moving-average buy signals were followed by higher returns. But Sullivan, Timmermann and White (1999) found the best rule did not beat the market in the following decade. See Moving averages.

Related

Sources & studies

  1. Investopedia (secondary): Trend
  2. Brock, Lakonishok & LeBaron (1992), Journal of Finance
  3. Sullivan, Timmermann & White (1999), Journal of Finance

Trading termsMoving averagesSupport and resistance

Last checked: 2026-11-04 · Educational, not financial advice.

Education only, not financial advice. No signals. Backtests are hypothetical: real trading can be worse. Past results don't predict future results.