Course: Technical Analysis Basics·Lesson 1 of 2·9 min read·Last reviewed 7 May 2026
Reading trend direction
Higher highs and higher lows — or just noise. How to tell the difference.
James Okonkwo
Ex-market maker · 11 yrs FX options · CMT
By the end of this lesson you'll be able to:
- Define uptrend and downtrend using swing structure
- Mark a trendline that respects at least two touches
- Avoid trading against the dominant timeframe trend
Structure before indicators
An uptrend makes higher highs and higher lows. A downtrend makes lower highs and lower lows. Indicators summarize this — they do not replace reading swings.
Try this
Open a daily chart. Mark the last three swing highs and lows. Does structure agree with the trade you wanted to take on the 5-minute chart?
Quiz — Test your understanding
1. An uptrend is defined by:
2. A valid trendline needs:
3. Trading against the higher-timeframe trend usually:
Next lesson
Support and resistance basics
- Mark support and resistance from prior reactions
- Explain why levels become zones, not exact prices
8 min readContinue to next lesson