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

 

 

By Steve Burns

After a lifelong fascination with financial markets, Steve began investing in 1993 and trading his accounts in 1995. It was love at first trade. After more than 30 successful years in the markets, Steve now dedicates his time to helping traders improve their psychology and profitability. New Trader U offers an extensive blog resource with more than 4,000 original articles, online courses, and best-selling books covering various topics.