Lesson 7 — Classic Trend Analysis
Learn how to identify uptrends, downtrends, ranges, trendlines, channels, and early signs of trend weakness.
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Login to Track ProgressTrend analysis helps traders understand market direction and rhythm. An uptrend generally forms higher highs and higher lows. A downtrend forms lower highs and lower lows. A range develops when price moves between boundaries without clear continuation.
This lesson teaches students how to identify trend direction without forcing the chart. Trendlines and channels can help visualize structure, but they become dangerous when traders draw them emotionally. A useful trendline should connect meaningful price behavior, not random candles.
Students also learn that trends change. A trend can weaken, accelerate, break, or transition into a range. Professional trend analysis is not about assuming the trend will continue forever; it is about monitoring the structure until the evidence changes.
1. Mark one uptrend, one downtrend, and one range.
2. Identify where a trend started to weaken.
3. Draw one trendline and explain why it is valid.
- 1. What defines an uptrend?
- 2. What defines a downtrend?
- 3. What is a range?
- 4. Why should traders avoid forcing trendlines?
- 5. How can trend analysis support trade selection?