Trend
A sustained directional tendency in price, described as up, down or sideways over a stated timeframe.
How it is identified
Uptrend: successively higher highs and higher lows; Downtrend: successively lower highs and lower lows
Unit
qualitative
In depth
A trend is a description of what price has already done, and identifying one is always retrospective — the definition requires prior swing points, so a trend can only be named after it exists. Trends are timeframe-dependent, so specifying the timeframe is part of stating the trend at all. Practitioners disagree about whether trends persist for reasons beyond chance, and the honest position is that momentum effects have been documented in academic work while their size and durability after costs are contested. Nothing in identifying a trend implies it will continue, and this dictionary makes no claim that it will.
Worked example
Highs at ₹505, ₹520 and ₹534 with lows at ₹462, ₹471 and ₹483 describe an uptrend on that timeframe. A close below ₹483 would break the sequence of higher lows and end the description.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “Trend” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.