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Trend — definition & meaning

The general direction a market is moving over time.

A trend is the prevailing direction of a market. An uptrend makes higher highs and higher lows; a downtrend makes lower highs and lower lows; a range moves sideways.

'The trend is your friend' is a common saying because trading with the trend can be easier than fighting it. Trends end, though, so identifying them is only half the job — managing the exit is the other half.

The information on Trding.io is for general information only and is not investment advice. Trading involves a real risk of losing money, and most retail traders lose. Never trade money you cannot afford to lose.

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