Q: How do you tell if the trend is UP or DOWN?

MJ: Trust your common sense. Look at the charts. If the price keeps moving higher over time, then it is UP trend. If the price keeps drifing lower, then it is DOWN trend.

There are two important parameters. One is the time frame. A day trader would look at ticker by ticker to decide if the trend is UP or DOWN; but a long term investor might look at the monthly chart to see the trend.    The other important parameter is the natural amplitude of the price movement. Price moves up or down in waves.  One must tell the difference between  wave oscillation and trend.

See the attached chart as example, if your investing for months, then the trend is UP. If you are investing for days, then the trend is DOWN.