A market trend is a predictable tendency of financial markets to move in a particular direction over time. This movement can be upward, indicating bullish markets or downward, indicating bearish markets. Traders identify trends by drawing lines, known as trendlines, that connect price action to create higher highs and lower lows for an uptrend or higher lows and lower highs for a downtrend.
When you understand how to spot a market trend, you can better align your business with customer needs and expectations. This enables you to tailor products, services and messaging, as well as inform strategic planning. It can also help you stay ahead of competitors who may not be as attuned to shifting market dynamics.
i The good news is that it’s possible to identify market trends without the use of sophisticated software or algorithms. You can look at your own data and the data of your competitors and simply draw a line from the most recent high point to the most recent low point to see if there’s an upward or downward trend. The peaks and troughs of the trend line can be analyzed for a buy or sell signal using technical analysis, a framework that uses support and resistance levels to identify market trends.
For example, a market trend that emerges from your own consumer research could reveal a shift in attitudes towards sustainability. A 2025 report from our US Consumer Trends team, for instance, showed that consumers’ priorities had shifted towards focusing on the economy, while sustainable behaviors continued to rise. Having access to these insights can enable you to shape smarter pricing, inventory and marketing strategies.