A market trend is the general direction of the stock market or any stock price towards higher or lower direction. Market trend can be identified using technical analysis, including price action, and technical indicators.
Market trend is of three forms -
- Uptrend
- Downtrend
- Sideways/Horizontal Trend
Uptrend: Uptrend is marked by rising share prices, such as higher swing highs and higher swing lows.
Downtrend: Downtrend is marked by falling share prices, such as lower swing lows and lower swing highs.
Sideways/Horizontal Trend: In a sideways trend, stock doesn’t move notably in either direction during an extended period. Tops and bottoms continue to be constant and there is no significant move to decide whether to buy a stock or not.
