A rising trend is an upward zigzag of price movement that results when the bulls are in control. We define the trend, as well as postulate future price movement, by drawing a line across the rising bottoms. To further clarify the boundaries of the price activity, we can also draw a line, which is parallel to the rising bottoms line, across the rising tops. This forms the trend channel, which allows us to set targets for future tops and bottoms in the trend by estimating where the price index will intercept the top and bottom of the channel. A rising trend is not "official" until there is a bottom above a bottom and a top above a top.

In this chart we can see a fairly well-defined rising trend channel. Also, within the channel we can see shorter-term rising trend lines. When the rising trend line is violated (the price index crosses down through the line), we consider the trend to have ended.