Detrend

AAA

DEFINITION of 'Detrend'

In forecasting models, the process of removing the effects of accumulating data sets from a trend to show only the absolute changes in values and to allow potential cyclical patterns to be identified. This is done using regression and other statistical techniques.

INVESTOPEDIA EXPLAINS 'Detrend'

Different charting services include the use of a detrend price oscillator, which gives traders a method for analyzing shorter-term cyclical patterns. These patterns can then be used to more effectively identify major turning points in the longer-term cycle.

RELATED TERMS
  1. Business Cycle

    The fluctuations in economic activity that an economy experiences ...
  2. Forecasting

    The use of historic data to determine the direction of future ...
  3. Lagging Indicator

    1. A measurable economic factor that changes after the economy ...
  4. Leading Indicator

    A measurable economic factor that changes before the economy ...
  5. Technical Analysis

    A method of evaluating securities by analyzing statistics generated ...
  6. Regression

    A statistical measure that attempts to determine the strength ...
Related Articles
  1. What are leading, lagging and coincident ...
    Investing

    What are leading, lagging and coincident ...

  2. Economic Indicators To Know
    Retirement

    Economic Indicators To Know

  3. What is the average salary for an accountant?
    Personal Finance

    What is the average salary for an accountant?

  4. Lognormal and Normal Distribution
    Fundamental Analysis

    Lognormal and Normal Distribution

Hot Definitions
  1. Halloween Strategy

    An investment technique in which an investor sells stocks before May 1 and refrains from reinvesting in the stock market ...
  2. Halloween Massacre

    Canada's decision to tax all income trusts domiciled in Canada. In October 2006, Canada's minister of finance, Jim Flaherty, ...
  3. Zombies

    Companies that continue to operate even though they are insolvent or near bankruptcy. Zombies often become casualties to ...
  4. Witching Hour

    The last hour of stock trading between 3pm (when the bond market closes) and 4pm EST. Witching hour is typically controlled ...
  5. October Effect

    The theory that stocks tend to decline during the month of October. The October effect is considered mainly to be a psychological ...
  6. Repurchase Agreement - Repo

    A form of short-term borrowing for dealers in government securities.
Trading Center