Reading a trend

Lesson 3 of 4 · about 6 minutes

3 questions, each checked the moment you answer it.

5 steps · about 6 minutes

The interactive lesson walks these ideas one screen at a time and checks your answers as you go. The text below covers the same ground for reading.

An uptrend forms higher highs and higher lows

Price rises, falls back, then rises again. Each new high is above the previous high, and each new low is above the previous low.

A downtrend is the same reading upside down

Real EUR/USD from January 2026: a high near 1.1996 at the left, then a long fall. Compare each high with the previous high and each low with the previous low. Every bounce stopped below the bounce before it, and every drop went further than the last one.

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