Home Wikituition Browse all terms Categories
Random term
Technical Analysis & Chart Patterns

Uptrend

A price sequence in which each significant high exceeds the previous high and each significant low exceeds the previous low.

How it is identified Test: current swing high > previous swing high, and current swing low > previous swing low
Unit qualitative

In depth

The two-part definition is what makes an uptrend testable rather than impressionistic: rising highs alone are not enough, because a series with rising highs and falling lows is a broadening pattern, not a trend. The definition also supplies its own invalidation point, which is its most practical feature — the trend is over when a swing low is broken, and that level can be stated in advance. Swing points must be defined by a rule, such as a minimum percentage move, or the identification becomes arbitrary. An uptrend is a description of the past; it carries no forecast, and none is offered here.

Worked example

Lows of ₹462, ₹471 and ₹483 with highs of ₹505, ₹520 and ₹534 satisfy both conditions. If the next pullback reaches ₹478, the higher-low condition fails and the sequence no longer meets the definition.

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 “Uptrend” 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.