How does one confirm an uptrend or downtrend in financial markets?

You can tell if prices are going up or down by seeing how they behave over time, like watching a toy car move along a track.

Imagine you're playing with your favorite toy car on a ramp. If the car keeps rolling forward and goes higher each time it moves, that’s like an uptrend, prices are rising. You can see it clearly because the car is going up the ramp consistently.

Now, if the car starts to roll backward or slows down and goes lower each time, that’s a downtrend, prices are falling. It's like watching your toy car go down a slide again and again, getting closer to the bottom every time.

Sometimes, you might need to look at more than just one or two times the car went up or down. You can count how many times it goes up in a row or how many times it goes down, that helps you know if the trend is real or just a little wobble.

Like counting your steps when you're climbing stairs, the more steps you take, the higher you go!

If the car keeps going forward most of the time, even with some small wobbles, that means the uptrend is strong. If it goes backward most of the time, the downtrend is real!