Published November 1, 2026 · Beginner education
THE IDEA, IN PLAIN LANGUAGE
A trend describes a directional pattern in past price movement. Traders often describe an uptrend as higher highs and higher lows, and a downtrend as lower highs and lower lows. Markets can also move sideways.
KEY VOCABULARY
- Swing high
- A local price peak.
- Swing low
- A local price trough.
A PRACTICAL EXAMPLE
Mark successive swing highs and lows on a historical chart, then note where the pattern stopped holding.
A COMMON MISTAKE
Assuming a past trend must continue.
WHAT TO REMEMBER
Trends are observations that can change, not promises.
SOURCE REFERENCES
Use these external resources to study further. Explanations here are our own; external resources may change.
- BabyPips: related source lesson ↗
- BabyPips: School of Pipsology — beginner forex curriculum ↗
- CFTC: understand forex risks ↗
RELATED VIDEOS
No lesson-specific video is published here yet. Follow @koufaxbtb on Instagram for existing creator content; it is not a substitute for these source references.
KEEP LEARNING
These are original foundational explanations with source references for further study. Independent editorial verification is pending; no lesson is labeled independently verified. They are not a claim of trading expertise. Demo exercises are labeled; no trading performance is presented. Real-money leveraged trading can cause substantial losses.