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Market Intelligence › Basic Terminologies
The sequence of higher highs and higher lows, and when it breaks
Published by The Retail Trader · JUL 24, 2026 · Market Structure
Trend is the most used word and the least defined. A mechanical definition exists for it, and it takes your decisions out of the realm of opinion.
An uptrend is one in which every new swing high is above the previous one and every new swing low is also above the previous one. A downtrend is the opposite.
As long as this sequence is running, the trend is alive — even if it seems slow or tired to you. And when the sequence breaks, the trend is broken, even if it looks strong to you.
A mechanical definition gives you:
• The same answer every day, whatever your mood.
• A clear invalidation point — when the trend became wrong is known in advance.
• Different trends on different timeframes are possible, and that is not a contradiction.
• Backtesting becomes possible, because the rule can be written down.
Write down your timeframe before every analysis. "The trend is up" without a timeframe is an incomplete sentence — an uptrend on the daily and a downtrend on the hourly at the same time is perfectly normal.
This article is for educational purposes only — it is not a buy or sell recommendation, it makes no claim of guaranteed returns, and it is not advisory. Rules, rates and mechanics are changed from time to time by the exchanges, SEBI and RBI, so verify every number yourself with your broker or an official source.