Trend
A trend is the direction price is generally moving. An uptrend makes higher highs and higher lows. A downtrend makes lower highs and lower lows.
In depth
Read it off the highs and lows, not off a feeling. Price goes 100, back to 97, up to 104, back to 101, then up to 108. Every peak is higher and every dip is higher, so that is an uptrend. The moment a dip breaks below the last one, the pattern has changed.
Sideways is its own state rather than a weak version of the other two. In a range there is no higher high to point at. Read direction on the higher chart, structure on the middle one, and use your entry chart for timing only.
Why it matters
Taking a short in an uptrend puts you against the side with more buyers, and the pullback you sold turns out to be a pause. Beginners mistake pullbacks for reversals over and over. Checking the higher chart first removes a whole category of losing trades before you place them.
Tag each trade with the direction you were trading and the By tag table shows whether going with or against the bigger chart pays. The stats page also splits long versus short results, which often makes the answer obvious.
Frequently asked questions
Look at the last few peaks and dips. Higher highs with higher lows is up, and the reverse is down.
The one above the chart you enter on, usually a few steps up. It answers up, down or sideways.
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