A rally is a sustained period of rising prices in stocks, bonds, commodities, or other financial markets. Rallies can last from hours to years and may be driven by fundamental factors, technical breakouts, or sentiment changes. Understanding rally characteristics helps traders identify trend opportunities and assess momentum sustainability.

Rally strength is measured by duration, magnitude, volume participation, and breadth across different securities or sectors. Strong rallies typically feature increasing volume and broad participation, while weak rallies may lack conviction and be vulnerable to reversals. Identifying rally stages helps optimize position timing and risk management.

Real-world example: Crude oil rallies from $60 to $85 per barrel over three months following OPEC production cuts and strong economic data, with increasing trading volumes and broad energy sector participation confirming the upward momentum.