A trend is the general direction in which the price of a security or the overall market moves over a period. Trends may be upward, downward, or sideways and are commonly identified using price action, moving averages, and technical indicators. Recognising the prevailing trend helps traders assess market sentiment and identify potential trading opportunities, including breakout stocks, where prices move beyond established support or resistance levels. Trends are typically analysed alongside volume and other technical indicators for confirmation.
