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What is Uptrend? Technical Analysis

Forex Educational Video Series

Author: Andreas Thalassinos (BSc, MSc, MSTA, CFTe, MFTA), Head of Education at FXTM.

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.

Disclaimer: This written/visual material is comprised of personal opinions and ideas. The content should not be construed as containing any type of investment advice and/or a solicitation for any transactions. It does not imply an obligation to purchase investment services, nor does it guarantee or predict future performance. FXTM, its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness of any information or data made available and assume no liability for any loss arising from any investment based on the same.

Risk Warning: There is a high level of risk involved with trading leveraged products such as forex and CFDs. You should not risk more than you can afford to lose, it is possible that you may lose more than your initial investment. You should not trade unless you fully understand the true extent of your exposure to the risk of loss. When trading, you must always take into consideration your level of experience. If the risks involved seem unclear to you, please seek independent financial advice.

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