Trending stocks are stocks that form a series of higher lows and higher highs, or lower lows and lower highs. Big buyers, such as institutional traders, money managers, and hedge funds, cause a stock to trend. Stocks don’t trend unless there are big buyers present. There are two types of trending stocks: uptrend and downtrend. Uptrending stocks form higher highs and higher lows. Downtrending stocks form lower highs and lower lows.
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