Uptrends and downtrends are quite simple. Hereโs the definition for each:
Uptrend: This describes when the price of a price is moving upward or getting higher. An uptrend is characterized by the chartโs peaks and lows reaching new highs as the trend progresses. So, if you look at the chart over time, it may be zigzagging, but itโs generally going up.
Downtrend: As you probably already guessed, a downtrend is the opposite of an uptrend. Itโs when a stock price is moving downward or getting lower.
The downtrend is characterized similarly to an uptrend โ but in the opposite direction. The peaks and troughs in the chart continue to drop as the trend goes on.
Over time the chart may zigzag, just like the uptrend, but its general direction is down.
Uptrend: This describes when the price of a price is moving upward or getting higher. An uptrend is characterized by the chartโs peaks and lows reaching new highs as the trend progresses. So, if you look at the chart over time, it may be zigzagging, but itโs generally going up.
Downtrend: As you probably already guessed, a downtrend is the opposite of an uptrend. Itโs when a stock price is moving downward or getting lower.
The downtrend is characterized similarly to an uptrend โ but in the opposite direction. The peaks and troughs in the chart continue to drop as the trend goes on.
Over time the chart may zigzag, just like the uptrend, but its general direction is down.