List of Financial Market Terms

An uptrend categorizes the price movement of a stock when the overall direction is upward. A formal uptrend is when each peak and trough of a stock trend is higher than the previous one on the trend.

The goal of most technical traders, whether in stock trading, options trading, or futures trading, is to identify a strong uptrend and to profit from it until it reverses. Selling an asset once the uptrend stops is one of the best ways to avoid large losses in day trading. Many traders will draw trendlines, as we do daily in the live trading room, to identify an uptrend and use this as a guide for when to sell as it can also be an early indication of a trend reversal.

visa inc stock uptrend

The inverse of an uptrend is a downtrend.

Related terms: Trend channel, primary trend, secondary trend, and minor (short term) trend.

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