| uptrend A series of price increases in a security or in the general market. Some investors believe a security tends to take on a certain inertia; as a result, these investors search for stock in an uptrend, thinking that it will probably continue to move in the same direction. Compare downtrend. |
What Does Uptrend Mean?
Describes the price movement of a financial asset when the overall direction is upward. A formal uptrend occurs when each successive peak and trough is higher than the ones earlier in the trend. Notice in the accompanying chart how each successive peak and trough is above the previous ones. For example, the peak at Point 4 is higher than the peak at Point 2. The uptrend will be considered broken if the next low on the chart falls below Point 5. Uptrend is the opposite of downtrend.
Investopedia explains Uptrend
The goal of most technical traders is to identify a strong uptrend and profit from it until it reverses. Selling an asset once it has failed to create a new peak or trough is one of the best ways to avoid the large losses that can result from a reversed trend. Many technical traders also draw trend lines to identify an uptrend and use this tool as a guide for when to sell as it can be an early indication of a trend reversal.
Related Terms:
• Average Directional Index—ADX
• Downtrend
• Trend Analysis
• Volume
• Uptick
How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content.
| ?Page tools | ||
|---|---|---|
|