What is Uptrend? Technical Analysis

Forex Educational Video Series

What is Uptrend in Forex Trading?

Now that we are familiar with the principle of trend, it’s time to get into more detail about the three main types of trend directions. Let’s talk about uptrend first.

Uptrend is a series of successively higher tops and higher bottoms. If the pattern holds, the uptrend remains intact. Traders usually draw a line, connecting two or more bottoms. This is called the ‘uptrend line’. A minimum of two bottoms are needed to make an uptrend line, but the more bottoms used, the more traders feel confident in the uptrend because it indicates a stronger direction.

The uptrend line acts as “support” while the tops act as “resistance”. The usual trajectory of price is that it once it reaches the uptrend line, it bounces back up to move even higher. When supply becomes greater than demand, take note that the uptrend line may be breached. Next up: the downtrend! Stay tuned.

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