Uptrend

Definition:

An Uptrend is when the price action of a chart has an overall upward direction. Price action typically swings up and down during any given timeframe, so an uptrend is a series of higher swing highs (peaks) and higher swing lows (valleys).

Background:

The lifecycle of a trend is typically three to four swings (highs OR lows) in duration, or an accumulation of six to eight swings (highs AND lows combined).

Practical Use:

Once defined, Uptrends can help the technical analyst determine how and when to "buy" or "sell short," as well as how and when to "sell" or "buy to cover" existing positions.