Trending market
A market making a series of higher highs and higher lows, or lower highs and lower lows, in one clear direction.
Full explanation
In a trending market pullbacks are shallow and one side keeps winning. Moves away from a level tend to continue rather than snap back, and the day usually has a direction you can name in a sentence.
Trends are best traded in the direction of the higher-timeframe structure, usually by entering on pullbacks or continuation breaks rather than chasing extended candles.
Trends end. The usual first warning is a deeper pullback that breaks the last swing point, not a single strong candle.
Why traders watch it
Most strategies make their money in a small number of trending sessions, so recognising one early is worth more than any indicator tweak.
Trading considerations
- Trade with the trend rather than trying to pick the top or bottom.
- Wait for a pullback — chasing an extended move puts the stop too far away.
- Treat a broken swing point as evidence the trend may be over.
Educational guidance only — never a trading signal or recommendation.
Related indicators
Asian session
The overnight session driven by Tokyo, Sydney, Hong Kong and Singapore, typically quieter and range-bound.
Clear direction
When one side is plainly in control: price makes progress one way and pullbacks are shallow.
Consolidation
A pause in which price moves tightly sideways, often after a strong move, while the market absorbs it.
First spike
The sharp, immediate move in the seconds after a release or a level breaks — usually the least reliable part of the whole move.
High-impact news
A scheduled release with a strong record of moving markets sharply — for example inflation, employment data or an interest-rate decision.
Holding a move
When price stays at its new level after a move instead of drifting back — the sign that the move was accepted.