Introduction
One of the most common assumptions in financial markets is that trends simply exist.
People often look at a chart and say:
- The market is in an uptrend.
- The market is in a downtrend.
- The trend is strong.
- The trend is weak.
However, trends do not suddenly appear.
They develop.
Before a trend becomes obvious, the market often passes through a series of behavioural changes.
Participation evolves.
Price behaviour changes.
Structure develops.
Over time, these changes may eventually produce what market participants recognize as a trend.
Understanding how trends emerge can help participants move beyond simple definitions and develop a deeper appreciation of market behaviour.

