How to Identify Trend
There are several methods to identify trend direction. Use multiple methods for confirmation - when they agree, you have higher confidence.
Higher highs and higher lows = uptrend. The most reliable method.
Price above MA = bullish. Fast MA above slow MA = bullish.
Connect swing highs (downtrend) or lows (uptrend). Breaks signal changes.
ADX above 25 = trending. Below 20 = ranging. Doesn't show direction.
The trend is your edge. In an uptrend, even a mediocre long setup has the wind at its back. Against the trend, even a perfect setup faces headwinds. Always know the trend before choosing your direction.
Continue through core concepts
Compare this reference with related structures and readings before applying it to a live chart.