An uptrend is characterized by successively higher highs and higher lows. A downtrend is characterized by successively lower lows and lower highs.

An longer-term uptrend or downtrend will frequently not reverse until one or several large surges in the Volume Moving Average (to the upside or downside, as the case may be) appear. Volume analysis also provides the information on money flow and on the bullish and bearish volume which could be also used to define uptrend and downtrend reversals.

Information about the currently longer-term prevailing market uptrend or downtrend is useful for placing trades. We publish such information in the "Longer-Term Market Outlook" section of our daily Market Outlook.