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Trading term

Trend

The prevailing direction of price over a chosen timeframe.

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By the Orca Crypto teamUpdated 2026-09-01How we check this3 min readDefinition
Definition

The prevailing direction of price over a chosen timeframe.

An uptrend makes higher highs and higher lows. A downtrend makes lower highs and lower lows. Anything else is a range, and ranges are where most patterns fail.

Trend is timeframe dependent. A daily uptrend can sit inside a weekly downtrend, and traders argue endlessly because they are looking at different charts.

In practice

Identify the trend on a higher timeframe first, then trade in that direction on a lower one.

What people get wrong

That a trend has to be up or down. Markets spend most of their time going sideways, which is where trend following methods lose money steadily. Naming the timeframe is half of naming the trend.

Common questions

What timeframe should I look at?
The one that matches how long you intend to hold. A daily chart says nothing useful about a five minute trade, and the reverse. Mixing them is a reliable way to confuse yourself.
How do I know a trend has ended?
You do not, in real time. Definitions like a break of the last higher low give you a rule rather than certainty, and the value is in having a rule at all.

Where this comes up on the site

The guides that actually use this word, rather than a list of everything we have written.

Where to go next

More trading terms

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