Trend structure
Higher highs and higher lows, or the reverse
What it is
An uptrend is a sequence of higher swing highs and higher swing lows. A downtrend is the inverse. Anything else is a range.
What it may suggest
Trading with the structure means the larger flow is behind the idea rather than against it. A broken swing low in an uptrend is the first evidence the structure is changing.
Where it fails
Trend is timeframe-dependent: the same chart can be trending up daily and down hourly. Naming the timeframe is part of naming the trend.
Also called higher highs, lower lows, market structure, uptrend, downtrend.
More concepts
- Breakout and retestPrice clears a level, then comes back to it
- InvalidationThe price that proves you wrong
- Risk-to-rewardDistance to target versus distance to stop
- Position sizingHow much, given where the stop is
- Liquidity sweepA push through an obvious level, then straight back
- ConfluenceSeveral independent reasons pointing the same way
ChartPeak is an educational tool. It is not financial advice and does not make investment recommendations. Trading carries a risk of loss, and past performance does not indicate future results. Do your own research.
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