← Glossary · Indicator
Trend (Uptrend, Downtrend, Sideways)
The dominant direction of price over a given timeframe: up, down, or sideways (consolidation).
What it is
Defined formally by Dow Theory: an uptrend is a sequence of higher highs and higher lows; a downtrend is lower highs and lower lows; anything else is sideways or 'range-bound'. The trade-defining question is: 'on what timeframe?' An asset can be in an uptrend on the daily and a downtrend on the 1-hour simultaneously. The 'trend is your friend' rule means: trade in the direction of the higher timeframe; use the lower timeframe for entry timing. Fighting the higher-timeframe trend is the most common mistake retail traders make.
Example
BTC daily chart: higher highs and higher lows since October — clear uptrend. 1h chart: a 6% pullback creates lower highs and lower lows temporarily. A trend-aligned trader uses the 1h dip to add to longs, not panic-sell.
How Indikora uses Trend
Indikora's Regime agent classifies trend state on 1h and 4h, and the 4h Multi-Timeframe gate blocks any signal that fights the higher-timeframe trend.
Related terms
- EMA (Exponential Moving Average) — Moving average that weights recent prices more heavily — reacts faster than a simple moving average.
- Breakout — A decisive close beyond a key support, resistance, or consolidation pattern — usually with volume confirmation.
Strategy guides that cover this
- How to Trade with RSI — A Complete Strategy Guide
Three reliable RSI setups, when each works, and the mistakes that turn RSI from edge into noise - MACD Divergence Strategy — The Complete Playbook
How to spot, validate, and trade MACD divergence with high-conviction confluence checks