A trend describes the general direction of price over a chosen period. A range describes price moving between areas without a clear sustained direction.
The idea
In an upward trend, price may form a sequence of higher highs and higher lows. In a downward trend, it may form lower highs and lower lows. Markets do not move in straight lines, and a move against the trend may be temporary or develop into a reversal. In a range, price repeatedly moves between an upper and lower area, but either boundary can break.
Apply the idea
Imagine a chart where successive lows rise from $90 to $95 to $100, while highs also rise. That sequence can help describe an upward trend on the selected timeframe. If price then falls below a prior low, review the structure rather than assuming the trend has ended immediately. Other timeframes may tell a different story.
Key takeaway
Describe direction using the relevant timeframe and recent price structure. Trends and ranges can change, so keep your interpretation open to new information.
