If you stare at the trading screen the rapid movement and shifts in prices is enough to confuse the coolest of minds. Outright, this may look like volatility that can demoralize the best of traders. But if you scratch the surface, you will find that beneath the madness of the markets there is a method to the madness. There are always going to be ups and downs in the stock market and in every stock, but these ups and downs will eventually form a trend that moves in some general direction. One of the major assumptions of technical analysis is that stock market prices always depict an underlying trend that can be deciphered and interpreted appropriately for the purpose of trade execution. It is on this assumption of trend that the entire body of knowledge surrounding technical analysis is based.