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.
- AHigher highs and higher lowsCorrect
- BLower highs and lower lows
- CHigher highs and lower lows
- 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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