7.13What is an uptrend?
1What is it?
An uptrend has higher highs and higher lows: each peak and each dip is above the previous one.
2Why does it exist?
Buyers are consistently willing to pay more.
3Diagram
4Quick revision
- Higher highs and higher lows.
- Buy dips, not peaks.
- Ends when a lower low forms.
5Knowledge check
Q1. Define an uptrend.Show answer
Higher highs and higher lows.
Q2. What signals a possible end?Show answer
A lower low (breaking the previous swing low).
Q3. Where do trend traders often buy?Show answer
On pullbacks to higher lows.