Market Concepts
Trend — Price Direction
What it is and why it is important to trade in the direction of the market.
1 min readUpdated: 2026-03-26
Trend is your Friend
Trend is the general direction of an asset's price movement. In financial markets, price never moves in a straight line; it moves in zigzags. Analyzing these zigzags allows you to understand where the "main flow" of money is headed.
Three Market States
- Bullish Trend (Uptrend): Buyers dominate, each new peak is higher than the previous one.
- Bearish Trend (Downtrend): Sellers dominate, each new low is lower than the previous one.
- Flat or Range: Forces of both sides are equal, price is squeezed into a horizontal corridor.
The traders' proverb says: «Trend is your friend until the end». Trading with the trend is considered the safest and most profitable strategy.