A trend in the market at large or a specific security that is characterized by higher highs and higher lows. Such a trend is caused by a large increase in demand resulting from substantial flows of investment capital into the market. Consequently, prices (of stocks, indexes or bonds, etc.) get bidden up, overall. A rally marks a period in which asset prices experience sustained upward momentum. The length or size of a rally depends on the depth of demand along with the selling pressure (supply pressure).

Typically, a rally takes place after a period characterized by flat or declining prices, or prices trading in a narrow band.