Stock Trend

What is Stock Trend

A trend is the broad upward or downward movement of a stock’s price over time. Upward movement is called an uptrend, while those which move lower over a period of time are said to be in a downtrend. Investors have a tendency of buying stocks that are seemingly in an uptrend and selling the ones in a downtrend.
In an uptrend, both the peaks (tops) and troughs (bottoms) of a stock chart keep increasing successively. So, every day or so, the stock price touches a new high and falls lower than it did previously.
A downtrend is a pattern, where a stock is falling constantly. Not only are successive peaks lower, successive troughs are also lower. This means that investors in the market are convinced that the stock will fall further.
In a sideways trend, a stock doesn’t move notably in either direction during an extended period. Peaks and troughs continue to be constant and there is no significant move to decide whether to buy a stock or not.