Trends
An uptrend is a pattern revealed through technical analysis of a stock that shows it is in a bullish position, with its value consistently rising. An uptrend may last for short periods of time, such as weeks, or can last for months and months. One bearish day does not mean the uptrend is finished, but rather the stock may be taking a break before continuing its upward movement.
An uptrend is drawn on a stock's price chart by identifying two or more low points, but the second low point must be higher than the first low point. When a stock is in an uptrend it will establish a pattern of creating higher highs and higher lows. These rising price points, when connected by a straight line, indicates the upward trend line.
Uptrend info by BetterTrades Charts
An uptend is considered to be confirmed when the price move is accompanied by higher volume, as this shows the desire by the stock's buyers to continue purchasing the stock. As long as the price of the stock remains above the trend line, the uptrend is considered to be intact. When the price breaks below the uptrend line, it indicates that demand is less and that a reversal could be at hand.
