In the financial markets, correctly identifying the rise trend is crucial for investors. This is not just about simply observing price increases, but requires a deep analysis of market structure and dynamics.

The core characteristic of an upward trend is that prices continuously create new highs (Higher High, abbreviated as HH) and higher lows (Higher Low, abbreviated as HL). This pattern indicates that buyer strength remains dominant, maintaining an overall upward momentum even during short-term pullbacks.

To identify this trend, investors first need to locate key highs and lows on the chart. These points are usually accompanied by noticeable price reversals or significant changes in volatility. Subsequently, the focus should be on whether each low after a pullback is higher than the previous low, and whether each high after a rise breaks through the previous high.

The alternating appearance of HH and HL reflects the sustained dominance of bullish forces. Even if the market experiences a correction, as long as this structure is not broken, the rising trend remains intact. The persistence of this pattern demonstrates the confidence and expectations of market participants regarding price increases.

However, investors also need to remain vigilant. If the highs cannot break through the previous highs, or the lows fall below the previous lows, this may indicate that the trend is weakening or about to reverse. In this case, it may be necessary to reassess the market conditions and investment strategies.

In general, determining a rise trend is not just about observing a simple increase in price; it is more important to confirm the coherence of market structure and the stability of dominant forces. By carefully analyzing the formation process of HH and HL, investors can better grasp market movements and make more informed investment decisions.

Understanding and applying this analytical method can help investors maintain clear judgments in a complex and changing market, enhancing their ability to grasp trends, thereby achieving better results in their investments.