Uptrend

Uptrend
Describes the price movement of a financial asset when the overall direction is upward. A formal uptrend is when each successive peak and trough is higher than the ones found earlier in the trend.

Uptrend


Notice how each successive peak and trough is located above the previous ones. For example, the peak at Point 4 is higher than the peak at Point 2. The uptrend will be deemed broken if the next low on the chart falls below Point 5.

Uptrend is the opposite of downtrend

The goal of most technical traders is to identify a strong uptrend and to 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 will also draw trendlines to identify an uptrend and will use this tool as a guide for when to sell as it can also be an early indication of a trend reversal.


Investment dictionary. . 2012.

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Look at other dictionaries:

  • uptrend — index development (progression) Burton s Legal Thesaurus. William C. Burton. 2006 …   Law dictionary

  • uptrend — [up′trend΄] n. an upward trend, esp. a financial one …   English World dictionary

  • uptrend — A channel of upward price movement. The CENTER ONLINE Futures Glossary A price trend characterized by a series of higher highs and higher lows. Chicago Mercantile Exchange Glossary * * * uptrend up‧trend [ˈʌptrend] noun [countable] COMMERCE… …   Financial and business terms

  • uptrend — [[t]ʌ̱ptrend[/t]] N SING An uptrend is a general improvement in something such as a market or the economy. Racal Electronics shares have been in a strong uptrend... Many analysts think the dollar is on an uptrend. Ant: downtrend …   English dictionary

  • uptrend — /ˈʌptrɛnd/ (say uptrend) noun 1. an upward trend: an uptrend in interest rates. –verb (i) 2. to tend in an upward direction, as of rates, etc …  

  • Uptrend/Downtrend —    In technical analysis both an uptrend and a downtrend are defined as trends that can be drawn on a chart by joining a minimum of four points.    ► See also Technical Analysis …   Financial and business terms

  • uptrend — noun Date: 1926 an upturn especially in business or economic activity …   New Collegiate Dictionary

  • uptrend — /up trend /, n. a tendency upward or toward growth, esp. in economic development. [1940 45; UP + TREND] * * * …   Universalium

  • uptrend — noun an upward trend, or an upturn …   Wiktionary

  • uptrend — Synonyms and related words: Great Leap Forward, access, accession, accretion, accrual, accruement, accumulation, addition, advance, advancement, aggrandizement, amelioration, amendment, amplification, appreciation, ascent, augmentation,… …   Moby Thesaurus

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