A trend represents the general direction of price movement over time, characterized by successive higher highs and higher lows (uptrend) or lower highs and lower lows (downtrend). Trends form the foundation of technical analysis and momentum-based trading strategies. Understanding trend identification and following helps align trading with dominant market forces.

Trend analysis involves identifying trend direction, strength, and potential reversal points using various technical tools including trend lines, moving averages, and momentum indicators. Trends can exist across multiple timeframes simultaneously. Successful trend following requires patience, discipline, and appropriate risk management techniques.

Real-world example: Crude oil establishes an uptrend from $60 to $85 over four months, with each pullback finding support at higher levels, prompting trend-following traders to buy weakness and hold long positions aligned with the dominant direction.