{"id":178,"date":"2026-08-15T04:28:43","date_gmt":"2026-08-15T04:28:43","guid":{"rendered":"https:\/\/www.austockmarket.com\/universe\/?p=178"},"modified":"2026-08-15T04:32:23","modified_gmt":"2026-08-15T04:32:23","slug":"lesson-15-uptrend-downtrend-sideways-markets","status":"publish","type":"post","link":"https:\/\/www.austockmarket.com\/universe\/lesson-15-uptrend-downtrend-sideways-markets\/","title":{"rendered":"Lesson 15 \u2014 Uptrend, Downtrend &#038; Sideways Markets"},"content":{"rendered":"<style>\r\n.au-ta15{font-family:Arial,sans-serif;background:#F5F8FC;color:#17233C;max-width:900px;margin:20px auto;border:1px solid #DCE4EF;border-radius:18px;overflow:hidden;box-shadow:0 6px 25px rgba(6,43,114,.08)}\r\n.au-ta15 *{box-sizing:border-box}\r\n.au-ta15-head{background:#062B72;color:#fff;padding:25px 22px}\r\n.au-ta15-kicker{font-size:12px;font-weight:700;color:#39E600;letter-spacing:1px}\r\n.au-ta15-head h2{margin:7px 0 5px;font-size:27px;color:#fff}\r\n.au-ta15-head 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h3{color:#fff}\r\n.au-ta15-xp{font-size:26px;color:#39E600;font-weight:800;margin:15px}\r\n@media(max-width:600px){\r\n.au-ta15{margin:10px;border-radius:14px}\r\n.au-ta15-head h2{font-size:23px}\r\n.au-ta15-body{padding:16px}\r\n.au-ta15-frame{min-height:470px}\r\n.au-ta15-grid{grid-template-columns:1fr}\r\n.au-ta15 h3{font-size:22px}\r\n}\r\n<\/style>\r\n\r\n<div class=\"au-ta15\" id=\"auTA15\">\r\n\r\n<div class=\"au-ta15-head\">\r\n<div class=\"au-ta15-kicker\">AU STOCK MARKET \u2022 TECHNICAL ANALYSIS ACADEMY<\/div>\r\n<h2>Lesson 15 \u2014 Uptrend, Downtrend & Sideways Markets<\/h2>\r\n<p>Learn how to identify the three basic market conditions.<\/p>\r\n<\/div>\r\n\r\n<div class=\"au-ta15-progress\"><div class=\"au-ta15-bar\"><\/div><\/div>\r\n\r\n<div class=\"au-ta15-body\">\r\n\r\n<!-- FRAME 1 -->\r\n<section class=\"au-ta15-frame active\">\r\n<span class=\"au-ta15-num\">01 \/ 20<\/span>\r\n<h3>Markets Do Not Always Move the Same Way<\/h3>\r\n<p>Before analysing indicators or patterns, technical analysts first ask a simple question:<\/p>\r\n<div class=\"au-ta15-callout\">\r\n<strong>What is the market doing?<\/strong>\r\n<\/div>\r\n<p>Price generally moves in one of three broad conditions:<\/p>\r\n<div class=\"au-ta15-grid\">\r\n<div class=\"au-ta15-box\"><strong>\ud83d\udcc8 Uptrend<\/strong>Prices generally rise<\/div>\r\n<div class=\"au-ta15-box\"><strong>\ud83d\udcc9 Downtrend<\/strong>Prices generally fall<\/div>\r\n<div class=\"au-ta15-box\"><strong>\u2194 Sideways<\/strong>Prices move within a range<\/div>\r\n<\/div>\r\n<\/section>\r\n\r\n<!-- FRAME 2 -->\r\n<section class=\"au-ta15-frame\">\r\n<span class=\"au-ta15-num\">02 \/ 20<\/span>\r\n<h3>The Three Market Conditions<\/h3>\r\n<div class=\"au-ta15-card\">\r\n<span class=\"au-ta15-pill\">\ud83d\udcc8 Uptrend<\/span>\r\n<span class=\"au-ta15-pill\">\ud83d\udcc9 Downtrend<\/span>\r\n<span class=\"au-ta15-pill\">\u2194 Sideways<\/span>\r\n<\/div>\r\n<p>Recognising the market condition can help traders decide which technical tools and strategies may be more appropriate.<\/p>\r\n<div class=\"au-ta15-callout\">\r\n<strong>Important:<\/strong> A trend describes market behaviour. It does not guarantee what happens next.\r\n<\/div>\r\n<\/section>\r\n\r\n<!-- FRAME 3 -->\r\n<section class=\"au-ta15-frame\">\r\n<span class=\"au-ta15-num\">03 \/ 20<\/span>\r\n<h3>What Is an Uptrend?<\/h3>\r\n<p>An <strong>uptrend<\/strong> occurs when price generally moves higher over time.<\/p>\r\n<div class=\"au-ta15-chart\">\r\n<svg viewBox=\"0 0 700 300\">\r\n<polyline points=\"50,245 130,190 190,220 270,145 330,180 420,105 480,135 570,65 650,95\"\r\nfill=\"none\" stroke=\"#25D900\" stroke-width=\"7\" stroke-linecap=\"round\" stroke-linejoin=\"round\"\/>\r\n<circle cx=\"130\" cy=\"190\" r=\"7\" fill=\"#062B72\"\/>\r\n<circle cx=\"270\" cy=\"145\" r=\"7\" fill=\"#062B72\"\/>\r\n<circle cx=\"420\" cy=\"105\" r=\"7\" fill=\"#062B72\"\/>\r\n<circle cx=\"570\" cy=\"65\" r=\"7\" fill=\"#062B72\"\/>\r\n<text x=\"55\" y=\"275\" fill=\"#17233C\" font-size=\"18\">Time \u2192<\/text>\r\n<text x=\"520\" y=\"45\" fill=\"#062B72\" font-size=\"18\" font-weight=\"bold\">Higher<\/text>\r\n<\/svg>\r\n<\/div>\r\n<\/section>\r\n\r\n<!-- FRAME 4 -->\r\n<section class=\"au-ta15-frame\">\r\n<span class=\"au-ta15-num\">04 \/ 20<\/span>\r\n<h3>Higher Highs & Higher Lows<\/h3>\r\n<p>One of the simplest ways to recognise an uptrend is to look for a sequence of <strong>higher highs and higher lows<\/strong>.<\/p>\r\n<div class=\"au-ta15-card\">\r\n<div class=\"au-ta15-grid\">\r\n<div class=\"au-ta15-box\"><strong class=\"au-ta15-green\">HH<\/strong>Higher High<\/div>\r\n<div class=\"au-ta15-box\"><strong class=\"au-ta15-green\">HL<\/strong>Higher Low<\/div>\r\n<div class=\"au-ta15-box\"><strong class=\"au-ta15-green\">HH<\/strong>Next Higher High<\/div>\r\n<\/div>\r\n<\/div>\r\n<p>The exact pattern does not need to be perfectly smooth. Markets naturally move up, pull back and move again.<\/p>\r\n<\/section>\r\n\r\n<!-- FRAME 5 -->\r\n<section class=\"au-ta15-frame\">\r\n<span class=\"au-ta15-num\">05 \/ 20<\/span>\r\n<h3>Uptrends Have Pullbacks<\/h3>\r\n<p>An uptrend does not mean that price rises every day.<\/p>\r\n<div class=\"au-ta15-chart\">\r\n<svg viewBox=\"0 0 700 300\">\r\n<polyline points=\"40,250 120,170 185,215 270,125 340,165 435,80 500,125 590,55 660,90\"\r\nfill=\"none\" stroke=\"#25D900\" stroke-width=\"7\" stroke-linecap=\"round\" stroke-linejoin=\"round\"\/>\r\n<text x=\"145\" y=\"245\" fill=\"#062B72\" font-size=\"17\" font-weight=\"bold\">Pullback<\/text>\r\n<text x=\"365\" y=\"200\" fill=\"#062B72\" font-size=\"17\" font-weight=\"bold\">Pullback<\/text>\r\n<\/svg>\r\n<\/div>\r\n<div class=\"au-ta15-callout\">\r\n<strong>Key idea:<\/strong> Pullbacks can occur while the larger trend remains bullish.\r\n<\/div>\r\n<\/section>\r\n\r\n<!-- FRAME 6 -->\r\n<section class=\"au-ta15-frame\">\r\n<span class=\"au-ta15-num\">06 \/ 20<\/span>\r\n<h3>What Is a Downtrend?<\/h3>\r\n<p>A <strong>downtrend<\/strong> occurs when price generally moves lower over time.<\/p>\r\n<div class=\"au-ta15-chart\">\r\n<svg viewBox=\"0 0 700 300\">\r\n<polyline points=\"50,60 130,110 190,85 270,155 330,125 420,195 480,160 570,235 650,205\"\r\nfill=\"none\" stroke=\"#062B72\" stroke-width=\"7\" stroke-linecap=\"round\" stroke-linejoin=\"round\"\/>\r\n<circle cx=\"130\" cy=\"110\" r=\"7\" fill=\"#25D900\"\/>\r\n<circle cx=\"270\" cy=\"155\" r=\"7\" fill=\"#25D900\"\/>\r\n<circle cx=\"420\" cy=\"195\" r=\"7\" fill=\"#25D900\"\/>\r\n<circle cx=\"570\" cy=\"235\" r=\"7\" fill=\"#25D900\"\/>\r\n<text x=\"55\" y=\"280\" fill=\"#17233C\" font-size=\"18\">Time \u2192<\/text>\r\n<text x=\"515\" y=\"260\" fill=\"#062B72\" font-size=\"18\" font-weight=\"bold\">Lower<\/text>\r\n<\/svg>\r\n<\/div>\r\n<\/section>\r\n\r\n<!-- FRAME 7 -->\r\n<section class=\"au-ta15-frame\">\r\n<span class=\"au-ta15-num\">07 \/ 20<\/span>\r\n<h3>Lower Highs & Lower Lows<\/h3>\r\n<p>A downtrend commonly shows a sequence of <strong>lower highs and lower lows<\/strong>.<\/p>\r\n<div class=\"au-ta15-grid\">\r\n<div class=\"au-ta15-box\"><strong>LH<\/strong>Lower High<\/div>\r\n<div class=\"au-ta15-box\"><strong>LL<\/strong>Lower Low<\/div>\r\n<div class=\"au-ta15-box\"><strong>LH<\/strong>Next Lower High<\/div>\r\n<\/div>\r\n<p>These price structures indicate that sellers are generally controlling the direction of the market.<\/p>\r\n<\/section>\r\n\r\n<!-- FRAME 8 -->\r\n<section class=\"au-ta15-frame\">\r\n<span class=\"au-ta15-num\">08 \/ 20<\/span>\r\n<h3>Downtrends Also Have Rallies<\/h3>\r\n<p>Price does not need to fall every day to remain in a downtrend.<\/p>\r\n<div class=\"au-ta15-chart\">\r\n<svg viewBox=\"0 0 700 300\">\r\n<polyline points=\"40,60 120,145 185,105 270,190 340,150 435,230 500,190 590,265 660,225\"\r\nfill=\"none\" stroke=\"#062B72\" stroke-width=\"7\" stroke-linecap=\"round\" stroke-linejoin=\"round\"\/>\r\n<text x=\"135\" y=\"90\" fill=\"#062B72\" font-size=\"17\" font-weight=\"bold\">Rally<\/text>\r\n<text x=\"355\" y=\"135\" fill=\"#062B72\" font-size=\"17\" font-weight=\"bold\">Rally<\/text>\r\n<\/svg>\r\n<\/div>\r\n<div class=\"au-ta15-callout\">\r\nShort-term rallies can happen inside a larger downtrend.\r\n<\/div>\r\n<\/section>\r\n\r\n<!-- FRAME 9 -->\r\n<section class=\"au-ta15-frame\">\r\n<span class=\"au-ta15-num\">09 \/ 20<\/span>\r\n<h3>What Is a Sideways Market?<\/h3>\r\n<p>A <strong>sideways market<\/strong>, also called a range-bound market, occurs when price moves between an area of support and resistance without establishing a clear long-term direction.<\/p>\r\n<div class=\"au-ta15-chart\">\r\n<svg viewBox=\"0 0 700 300\">\r\n<line x1=\"40\" y1=\"65\" x2=\"660\" y2=\"65\" stroke=\"#062B72\" stroke-width=\"4\"\/>\r\n<line x1=\"40\" y1=\"245\" x2=\"660\" y2=\"245\" stroke=\"#062B72\" stroke-width=\"4\"\/>\r\n<polyline points=\"50,220 120,90 185,205 255,80 325,220 400,95 470,210 545,85 650,210\"\r\nfill=\"none\" stroke=\"#25D900\" stroke-width=\"6\"\/>\r\n<text x=\"50\" y=\"45\" fill=\"#062B72\" font-size=\"17\" font-weight=\"bold\">Resistance<\/text>\r\n<text x=\"50\" y=\"285\" fill=\"#062B72\" font-size=\"17\" font-weight=\"bold\">Support<\/text>\r\n<\/svg>\r\n<\/div>\r\n<\/section>\r\n\r\n<!-- FRAME 10 -->\r\n<section class=\"au-ta15-frame\">\r\n<span class=\"au-ta15-num\">10 \/ 20<\/span>\r\n<h3>Sideways Means a Range<\/h3>\r\n<p>Instead of continuously making higher highs or lower lows, price repeatedly moves between two broad levels.<\/p>\r\n<div class=\"au-ta15-grid\">\r\n<div class=\"au-ta15-box\"><strong>TOP<\/strong>Resistance area<\/div>\r\n<div class=\"au-ta15-box\"><strong>MIDDLE<\/strong>Price movement<\/div>\r\n<div class=\"au-ta15-box\"><strong>BOTTOM<\/strong>Support area<\/div>\r\n<\/div>\r\n<div class=\"au-ta15-callout\">\r\nMarkets can remain sideways for days, weeks or even longer.\r\n<\/div>\r\n<\/section>\r\n\r\n<!-- FRAME 11 -->\r\n<section class=\"au-ta15-frame\">\r\n<span class=\"au-ta15-num\">11 \/ 20<\/span>\r\n<h3>Compare the Three<\/h3>\r\n<div class=\"au-ta15-grid\">\r\n<div class=\"au-ta15-box\"><strong class=\"au-ta15-green\">UPTREND<\/strong>Higher highs<br>Higher lows<\/div>\r\n<div class=\"au-ta15-box\"><strong>DOWNTREND<\/strong>Lower highs<br>Lower lows<\/div>\r\n<div class=\"au-ta15-box\"><strong>SIDEWAYS<\/strong>Range<br>No clear direction<\/div>\r\n<\/div>\r\n<p>Learning to classify the market is one of the first skills in technical analysis.<\/p>\r\n<\/section>\r\n\r\n<!-- FRAME 12 -->\r\n<section class=\"au-ta15-frame\">\r\n<span class=\"au-ta15-num\">12 \/ 20<\/span>\r\n<h3>Trendlines Can Help<\/h3>\r\n<p>A trendline is a line drawn on a chart to help visualise the general direction of price.<\/p>\r\n<div class=\"au-ta15-chart\">\r\n<svg viewBox=\"0 0 700 300\">\r\n<polyline points=\"60,250 145,190 220,215 315,145 390,170 485,100 565,125 650,65\"\r\nfill=\"none\" stroke=\"#25D900\" stroke-width=\"6\"\/>\r\n<line x1=\"55\" y1=\"270\" x2=\"655\" y2=\"75\" stroke=\"#062B72\" stroke-width=\"3\" stroke-dasharray=\"10 8\"\/>\r\n<\/svg>\r\n<\/div>\r\n<p>Trendlines are visual tools, not guarantees. Different traders may draw them slightly differently.<\/p>\r\n<\/section>\r\n\r\n<!-- FRAME 13 -->\r\n<section class=\"au-ta15-frame\">\r\n<span class=\"au-ta15-num\">13 \/ 20<\/span>\r\n<h3>Look at the Bigger Picture<\/h3>\r\n<p>A share can be in an uptrend on a short timeframe while being in a downtrend on a longer timeframe.<\/p>\r\n<div class=\"au-ta15-grid\">\r\n<div class=\"au-ta15-box\"><strong>5 MIN<\/strong>Short-term move<\/div>\r\n<div class=\"au-ta15-box\"><strong>DAILY<\/strong>Medium-term structure<\/div>\r\n<div class=\"au-ta15-box\"><strong>WEEKLY<\/strong>Longer-term trend<\/div>\r\n<\/div>\r\n<div class=\"au-ta15-callout\">\r\nAlways consider the timeframe before deciding what trend you are looking at.\r\n<\/div>\r\n<\/section>\r\n\r\n<!-- FRAME 14 -->\r\n<section class=\"au-ta15-frame\">\r\n<span class=\"au-ta15-num\">14 \/ 20<\/span>\r\n<h3>\ud83c\udde6\ud83c\uddfa Australian Market Example<\/h3>\r\n<p>Imagine an ASX-listed share moves from $10 to $12, pulls back to $11, then rises to $14 and later pulls back to $13.<\/p>\r\n<div class=\"au-ta15-card\">\r\n<div class=\"au-ta15-grid\">\r\n<div class=\"au-ta15-box\"><strong>$10<\/strong>Starting point<\/div>\r\n<div class=\"au-ta15-box\"><strong>$12 \u2192 $14<\/strong>Higher highs<\/div>\r\n<div class=\"au-ta15-box\"><strong>$11 \u2192 $13<\/strong>Higher lows<\/div>\r\n<\/div>\r\n<\/div>\r\n<p>The structure suggests an <strong>uptrend<\/strong>, assuming the broader chart supports that interpretation.<\/p>\r\n<\/section>\r\n\r\n<!-- FRAME 15 -->\r\n<section class=\"au-ta15-frame\">\r\n<span class=\"au-ta15-num\">15 \/ 20<\/span>\r\n<h3>Trends Can Change<\/h3>\r\n<p>An uptrend can weaken. A downtrend can reverse. A sideways market can eventually break into a new trend.<\/p>\r\n<div class=\"au-ta15-chart\">\r\n<svg viewBox=\"0 0 700 300\">\r\n<polyline points=\"40,240 110,180 170,210 240,140 300,175 365,110 425,145 490,75 545,120 610,160 660,230\"\r\nfill=\"none\" stroke=\"#25D900\" stroke-width=\"6\"\/>\r\n<line x1=\"535\" y1=\"50\" x2=\"660\" y2=\"245\" stroke=\"#062B72\" stroke-width=\"3\" stroke-dasharray=\"8 8\"\/>\r\n<text x=\"455\" y=\"55\" fill=\"#062B72\" font-size=\"17\" font-weight=\"bold\">Possible trend change<\/text>\r\n<\/svg>\r\n<\/div>\r\n<p>Never assume a trend will continue forever.<\/p>\r\n<\/section>\r\n\r\n<!-- FRAME 16 -->\r\n<section class=\"au-ta15-frame\">\r\n<span class=\"au-ta15-num\">16 \/ 20<\/span>\r\n<h3>Why Market Condition Matters<\/h3>\r\n<p>Different strategies can behave differently depending on the market condition.<\/p>\r\n<div class=\"au-ta15-grid\">\r\n<div class=\"au-ta15-box\"><strong class=\"au-ta15-green\">UPTREND<\/strong>Trend-following ideas may be useful<\/div>\r\n<div class=\"au-ta15-box\"><strong>DOWNTREND<\/strong>Risk management becomes critical<\/div>\r\n<div class=\"au-ta15-box\"><strong>SIDEWAYS<\/strong>Range behaviour becomes important<\/div>\r\n<\/div>\r\n<div class=\"au-ta15-callout\">\r\nThere is no single strategy that works equally well in every market condition.\r\n<\/div>\r\n<\/section>\r\n\r\n<!-- FRAME 17 -->\r\n<section class=\"au-ta15-frame\">\r\n<span class=\"au-ta15-num\">17 \/ 20<\/span>\r\n<h3>\ud83e\udde0 Chart Detective<\/h3>\r\n<div class=\"au-ta15-card\">\r\n<p class=\"au-ta15-q\">A chart shows higher highs and higher lows over several weeks. What market condition is most likely being described?<\/p>\r\n<button class=\"au-ta15-option\" onclick=\"auTA15Answer(this,false)\">A. Downtrend<\/button>\r\n<button class=\"au-ta15-option\" onclick=\"auTA15Answer(this,true)\">B. Uptrend<\/button>\r\n<button class=\"au-ta15-option\" onclick=\"auTA15Answer(this,false)\">C. Sideways market<\/button>\r\n<div class=\"au-ta15-answer\"><\/div>\r\n<\/div>\r\n<\/section>\r\n\r\n<!-- FRAME 18 -->\r\n<section class=\"au-ta15-frame\">\r\n<span class=\"au-ta15-num\">18 \/ 20<\/span>\r\n<h3>\ud83e\udde0 Chart Detective \u2014 Round 2<\/h3>\r\n<div class=\"au-ta15-card\">\r\n<p class=\"au-ta15-q\">Price repeatedly moves between $20 and $24 without creating a clear series of higher highs or lower lows. What is this?<\/p>\r\n<button class=\"au-ta15-option\" onclick=\"auTA15Answer(this,false)\">A. Strong uptrend<\/button>\r\n<button class=\"au-ta15-option\" onclick=\"auTA15Answer(this,false)\">B. Strong downtrend<\/button>\r\n<button class=\"au-ta15-option\" onclick=\"auTA15Answer(this,true)\">C. Sideways market<\/button>\r\n<div class=\"au-ta15-answer\"><\/div>\r\n<\/div>\r\n<\/section>\r\n\r\n<!-- FRAME 19 -->\r\n<section class=\"au-ta15-frame\">\r\n<span class=\"au-ta15-num\">19 \/ 20<\/span>\r\n<h3>Lesson Summary<\/h3>\r\n<div class=\"au-ta15-grid\">\r\n<div class=\"au-ta15-box\"><strong class=\"au-ta15-green\">\ud83d\udcc8 UPTREND<\/strong>Higher highs + higher lows<\/div>\r\n<div class=\"au-ta15-box\"><strong>\ud83d\udcc9 DOWNTREND<\/strong>Lower highs + lower lows<\/div>\r\n<div class=\"au-ta15-box\"><strong>\u2194 SIDEWAYS<\/strong>Price moves within a range<\/div>\r\n<\/div>\r\n<div class=\"au-ta15-callout\">\r\n<strong>Remember:<\/strong> First identify the market condition. Then consider which technical tools may fit that environment.\r\n<\/div>\r\n<\/section>\r\n\r\n<!-- FRAME 20 -->\r\n<section class=\"au-ta15-frame\">\r\n<span class=\"au-ta15-num\">20 \/ 20<\/span>\r\n<div class=\"au-ta15-complete\">\r\n<div style=\"font-size:52px\">\ud83c\udfc6<\/div>\r\n<h3>Lesson Complete!<\/h3>\r\n<p>You can now recognise the three basic market conditions:<\/p>\r\n<p><strong>\ud83d\udcc8 Uptrend \u2022 \ud83d\udcc9 Downtrend \u2022 \u2194 Sideways<\/strong><\/p>\r\n<div class=\"au-ta15-xp\">+100 XP<\/div>\r\n<p style=\"color:#DCE4EF\">Next Lesson: Higher Highs & Higher Lows<\/p>\r\n<\/div>\r\n<\/section>\r\n\r\n<div class=\"au-ta15-nav\">\r\n<button class=\"au-ta15-btn au-ta15-prev\" onclick=\"auTA15Move(-1)\">\u2190 Previous<\/button>\r\n<span class=\"au-ta15-count\">1 \/ 20<\/span>\r\n<button class=\"au-ta15-btn au-ta15-next\" onclick=\"auTA15Move(1)\">Next \u2192<\/button>\r\n<\/div>\r\n\r\n<\/div>\r\n<\/div>\r\n\r\n<script>\r\n(function(){\r\nlet i=0,box=document.getElementById('auTA15'),f=box.querySelectorAll('.au-ta15-frame');\r\n\r\nfunction show(n){\r\ni=Math.max(0,Math.min(n,f.length-1));\r\nf.forEach((x,k)=>x.classList.toggle('active',k===i));\r\nbox.querySelector('.au-ta15-count').textContent=(i+1)+' \/ '+f.length;\r\nbox.querySelector('.au-ta15-bar').style.width=((i+1)\/f.length*100)+'%';\r\nbox.querySelector('.au-ta15-prev').style.visibility=i?'visible':'hidden';\r\nbox.querySelector('.au-ta15-next').textContent=i===f.length-1?'\u2713 Complete':'Next \u2192';\r\n}\r\n\r\nwindow.auTA15Move=function(n){show(i+n);};\r\n\r\nwindow.auTA15Answer=function(btn,correct){\r\nlet card=btn.parentElement;\r\ncard.querySelectorAll('.au-ta15-option').forEach(x=>x.disabled=true);\r\nlet ans=card.querySelector('.au-ta15-answer');\r\nans.style.display='block';\r\n\r\nif(correct){\r\nbtn.classList.add('correct');\r\nans.style.color='#25D900';\r\nans.textContent='\u2713 Correct! Higher highs and higher lows are a classic sign of an uptrend.';\r\n}else{\r\nbtn.classList.add('wrong');\r\nans.style.color='#062B72';\r\nans.textContent='Not quite. Look for higher highs and higher lows when identifying an uptrend.';\r\n}\r\n};\r\n\r\nshow(0);\r\n})();\r\n<\/script>\n<p style=\"text-align: justify;\">Understanding the <a href=\"https:\/\/www.austockmarket.com\/universe\/lesson-14-what-is-a-market-trend\/\"><strong>direction of a market<\/strong><\/a> is one of the first and most important skills in technical analysis. Before using indicators, candlestick patterns or trading strategies, a technical analyst should first ask: <strong>\u201cWhat is the market doing?\u201d<\/strong><\/p>\n<p style=\"text-align: justify;\">Markets generally move in three broad conditions: <strong>uptrend, downtrend and sideways<\/strong>.<\/p>\n<h3>\ud83d\udcc8 Uptrend<\/h3>\n<p style=\"text-align: justify;\">An uptrend occurs when price generally moves higher over time. The most common signs are <strong>higher highs and higher lows<\/strong>.<\/p>\n<p style=\"text-align: justify;\">For example, a share may move from $10 to $12, pull back to $11, then rise to $14 and pull back to $13. The price is still making higher swing points.<\/p>\n<p style=\"text-align: justify;\">An uptrend does <strong>not<\/strong> mean the price rises every day. Pullbacks are normal. What matters is whether the overall market structure continues to produce higher highs and higher lows.<\/p>\n<h3>\ud83d\udcc9 Downtrend<\/h3>\n<p>A downtrend occurs when price generally moves lower over time.<\/p>\n<p style=\"text-align: justify;\">Technical analysts often look for <strong>lower highs and lower lows<\/strong>. For example, a share might fall from $20 to $17, rally to $18, fall to $15, then rally only to $16.<\/p>\n<p style=\"text-align: justify;\">The rallies do not necessarily mean the downtrend has ended. They can simply be temporary movements within the larger downward trend.<\/p>\n<h3>\u2194\ufe0f Sideways Market<\/h3>\n<p style=\"text-align: justify;\">A sideways market, also called a <strong>range-bound market<\/strong>, occurs when price moves between an area of support and resistance without establishing a clear upward or downward direction.<\/p>\n<p style=\"text-align: justify;\">For example, a share might repeatedly trade between $20 and $24. Buyers become more active around the lower part of the range, while sellers become more active around the upper part.<\/p>\n<p style=\"text-align: justify;\">Sideways markets can continue for days, weeks or even longer.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Understanding the direction of a market is one of the first and most important skills in technical analysis. Before using [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"elementor_theme","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[8],"tags":[],"class_list":["post-178","post","type-post","status-publish","format-standard","hentry","category-technical-analysis-foundations"],"rttpg_featured_image_url":null,"rttpg_author":{"display_name":"AU Stock Market Universe","author_link":"https:\/\/www.austockmarket.com\/universe\/author\/asxuniadmin\/"},"rttpg_comment":0,"rttpg_category":"<a href=\"https:\/\/www.austockmarket.com\/universe\/category\/technical-analysis\/technical-analysis-foundations\/\" rel=\"category tag\">Technical Analysis Foundations<\/a>","rttpg_excerpt":"Understanding the direction of a market is one of the first and most important skills in technical analysis. Before using [&hellip;]","_links":{"self":[{"href":"https:\/\/www.austockmarket.com\/universe\/wp-json\/wp\/v2\/posts\/178","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.austockmarket.com\/universe\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.austockmarket.com\/universe\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.austockmarket.com\/universe\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.austockmarket.com\/universe\/wp-json\/wp\/v2\/comments?post=178"}],"version-history":[{"count":0,"href":"https:\/\/www.austockmarket.com\/universe\/wp-json\/wp\/v2\/posts\/178\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.austockmarket.com\/universe\/wp-json\/wp\/v2\/media?parent=178"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.austockmarket.com\/universe\/wp-json\/wp\/v2\/categories?post=178"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.austockmarket.com\/universe\/wp-json\/wp\/v2\/tags?post=178"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}