Types of Trend

There are three types of trends; up- trend, downtrend, sideways trend(flat). An uptrend has higher peaks and higher troughs i.e. (higher highs and higher lows). A downtrend has lower troughs and lower peaks. A sideways trend occurs when the price of an asset trades within a fairly stable range without forming any significant trends over a period of time.

An uptrend implies bullish sentiments amongst the investors/traders where as a down trend implies bearish sentiments amongst the investors/traders.