In hindsight, trends are obvious and easy to identify.
"Uptrend" is a rising, upward-sloping trend occurs when prices reach higher peaks and higher troughs (lows). Pic 1. shows an example of an uptrend.
|Pic 1. Example of Uptrend|
"Downtrend" is a declining, downward-sloping trend occurs when prices reach lower peaks and lower troughs. Pic 2. shows an example of a downtrend.
|Pic 2. Example of Downtrend|