A trend is determined not by the slope of the line by eye, but by the structure of the chart. In an upward movement, each next high is higher than the previous one, and each pullback ends above the previous low. As soon as the next low is below the previous one, the structure is broken, and it is too early to talk about the continuation of the trend.
This definition is useful because it provides a specific point where the trade idea is proven wrong. Instead of 'the trend seems over,' the rule becomes 'the prior low has been breached, so the scenario failed.' That same level often serves as the reference point for a stop.
Trends exist simultaneously on different scales and can look in different directions. On the weekly chart there is an uptrend, on the hourly chart - a downtrend, and both descriptions are correct. Confusion between scales is one of the common reasons for unexpected losses: a person enters based on the signal of a smaller chart, while the market continues to move according to the larger one.
Markets also spend less time trending than moving sideways, where trend-following methods tend to work poorly. The first question before choosing a tool is therefore not 'which indicator should I use?' but 'what market regime is active now?' Trend and range conditions require different approaches.
