What Is a Trend?
The direction price has been walking
▸ Story
Imagine you and your child are walking up a long hill.
Every few minutes, you stop and draw a dot on a map showing where you are.
Dot 1 is lower, dot 2 is higher, dot 3 is higher, dot 4 is higher. When you connect the dots, the line goes up. That's an uptrend.
Now imagine walking down the hill: dot 1 is high, then each dot after it is lower. That's a downtrend.
If you walk along a flat path, every dot stays about the same. That's a sideways trend.
Price behaves the same way. It walks up, down, or sideways — just like you.
★ Key idea
A trend is the direction price has been walking.
✦ Quick quiz
1. What does an uptrend look like?
2. What does a downtrend look like?
3. What does a sideways trend look like?
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Wild and Wise
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