Uptrend
You, as a stock trader, will want to identify stock in an uptrend to find a possible candidate for a long trade. I look for these indications on a stock chart during a stock trend analysis to identify the uptrend: - The price is rising
- Corrections (pullbacks) are not as strong as rising moves.
- There are higher highs (HH) and higher lows (HL) on the chart.
- Volume during rising periods is higher than during corrections.
You can find them on this chart:
As you can see,
moving averages
can help you visually identify an uptrend during your stock trend analysis. Do you see that price is above all important moving averages and 20EMA is above 50EMA? Both these pieces of info are available on this chart and provide you additional hints for easier reading a stock chart with uptrend.
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