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NISM Certifications · NISM-Series-XV: Research Analyst · Technical Analysis

In a Dow Theory context, an uptrend is confirmed when the market makes:

An uptrend is identified by higher highs and higher lows, meaning each rally peak and each reaction trough is above the previous one. Lower highs and lower lows indicate a downtrend, while equal levels suggest a sideways market.

  1. AHigher highs and higher lowsCorrect
  2. BLower highs and lower lows
  3. CHigher highs and lower lows
  4. DEqual highs and equal lows

Explanation

An uptrend is defined by successive peaks and troughs each higher than the previous. Lower highs and lows define a downtrend, and the other combinations signal broadening or sideways patterns.

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