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A market trend is the direction that prices are moving in for a specific timeframe. A market can move in an uptrend, a downtrend, and other times just go sideways inside a price range.

Here are simple trend indicators to identify a trend in your trading timeframe. 

Uptrend indicators:

  1. Higher highs and higher lows in your timeframe. 
  2. A breakout to all time highs in price. 
  3. A breakout to 52-week highs in price. 
  4. A bullish MACD crossover. 
  5. Price remaining above a moving average in your timeframe. 
  6. A bullish moving average crossover when a shorter term moving average crosses above a longer term moving average.

Downtrend indicators:

  1. Lower highs and lower lows in your timeframe. 
  2. A breakdown to all time lows in price. 
  3. A breakout to 52-week lows in price. 
  4. A bearish MACD cross under. 
  5. Price remaining below a moving average in your timeframe. 
  6. A bearish moving average crossunder when a shorter term moving average crosses under a longer term moving average. 

Example of an uptrend in price:

uptrend

Chart Courtesy of TrendSpider.com

Example of a downtrend in price:

Downtrend

Chart Courtesy of TrendSpider.com

 

 



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