What indicates an uptrend in price activity?

An uptrend in price activity is characterized by a series of higher peaks and higher troughs, which indicates that the overall direction of the price movement is upward over time. When prices form higher peaks, they achieve new highs compared to previous price levels, signaling that buyers are gaining strength and pushing prices higher. Similarly, higher troughs suggest that even the corrective movements following these peaks are occurring at elevated levels compared to past lows, reinforcing the upward trajectory.

This pattern of higher highs and higher lows reflects growing demand and market participants' willingness to buy at increasing prices, demonstrating bullish sentiment and a sustained upward trend. It's essential for traders and analysts to identify these patterns as they can serve as a basis for making informed trading decisions based on the prevailing market momentum.