Trend Analysis for Beginners
Understand uptrends, downtrends, ranging markets and trend confirmation.
Direction over a chosen horizon
A trend is a pattern of directional movement across a defined interval. An asset may rise on a daily chart while falling on a 15-minute chart. Without stating the horizon, the phrase trending upward is incomplete.
Momentum and trend differ
A strong 24-hour percentage change can result from one early jump followed by hours of sideways trading. RSI may then decline while price remains near its highs. Neither observation alone proves a reversal.
Build a repeatable reading
Choose your interval, define swing or moving-average criteria and apply them consistently. Use scanner rankings to locate active markets, then inspect the actual chart. Do not treat high score, high RSI and trend confirmation as interchangeable concepts.
Use a consistent comparison window
Hypothetical worked example. A move from 80 to 100 over a month can contain a drop from 105 to 100 today. The monthly change is +25%, while that recent decline is about −4.76%. Both descriptions can be correct because the windows differ.
Which window influences the score?
The change component uses a rolling 24-hour ticker change. RSI uses 15-minute candles and OB uses the last 96 RSI readings. None is a direct monthly trend measurement.
Verify the assumptions
Check the input window, fees and data availability before applying this example. For the exact software behavior and coverage limits, read the scanner methodology. Examples explain arithmetic and interpretation; they are not historical performance claims.