Successful traders follow rule based strategies to minimize emotions which can ruin a trader's work. An uptrend is a series of higher lows usually accompanied by higher highs in price. A downtrend, in contrast, is a series of lower highs accompanied by lower lows. As traders, we are taught to trade in the direction of the prevailing trend for our selected trading time frame. Logic dictates that if that trend ends, it would be wise to exit from your trade before losses grow or profits are given back.
Forex and stock traders are looking for the consistently wrong investor, trader and take the opposite position. This will obviously lead to winning trades for them. All traders have read trading books that point out that increasing volume is good for the continuation of the trend. Many new stock traders will try and fight the trend.
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