Trend

Market structure — the pattern of swing highs and swing lows — is the most reliable way to identify a trend. An uptrend isn't defined by a rising line or a popular opinion; it's defined by a specific mechanical sequence: each significant high is above the previous significant high (higher highs), and each significant low is above the previous significant low (higher lows). As long as that sequence is intact, buyers are in control on both the advancing legs and the pullbacks. The moment a sequence breaks — a significant low that is below the previous low — the uptrend is in question and may be shifting.

Timeframe matters enormously for trend identification. A stock can be in an uptrend on the daily chart while being in a downtrend on the 15-minute chart simultaneously. "The trend" means nothing without specifying the timeframe. Most active traders align their trades with the higher-timeframe trend (daily or 4-hour) and use the lower timeframe (15-minute, 5-minute) for precise entry timing. This multi-timeframe alignment — "the daily trend is up, so I'm looking for long entries on the 15-minute chart" — is a fundamental framework for improving the probability of any individual trade by having the macro context as a tailwind.

The hardest part of trading trends isn't identifying them while they're in progress — it's resisting the urge to fade them. A stock that has been going up for six weeks "looks too high" to most traders, creating the psychological pull to short it or wait for a correction before getting long. But the trend is the evidence, not your valuation judgment. Trends persist longer than intuition expects. The professional approach is to trade in the direction of the trend until the market structure itself tells you it has ended (a lower low in an uptrend, a higher high in a downtrend), not because you have decided the trend has gone "too far."