What is Trend

A forex trend is broadly defined as the direction in which a currency pair is moving. Currencies usually do not rise straight up, nor do they fall vertically down. It is more common for them to retrace some of their decline or advance, before continuing in the direction of the original forex trend. Each forex trend, therefore, consists of a series of price thrusts in its direction and price reactions contrary to it (which are also called retracements, corrections or pullbacks). Trends are differentiated by their direction and by their duration.