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.


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.

  1. Business Cycle

    The fluctuations in economic activity that an economy experiences ...
  2. Lagging Indicator

    1. A measurable economic factor that changes after the economy ...
  3. Coincident Indicator

    A metric which shows the current state of economic activity within ...
  4. Leading Indicator

    A measurable economic factor that changes before the economy ...
  5. Consumer Confidence Index - CCI

    A survey by the Conference Board that measures how optimistic ...
  6. Forecasting

    The use of historic data to determine the direction of future ...
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  1. What are leading, lagging and coincident indicators? What are they for?

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  2. Is Colombia an emerging market economy?

    Colombia meets the criteria of an emerging market economy. The South American country has a much lower gross domestic product, ... Read Full Answer >>
  3. What assumptions are made when conducting a t-test?

    The common assumptions made when doing a t-test include those regarding the scale of measurement, random sampling, normality ... Read Full Answer >>
  4. What are some of the more common types of regressions investors can use?

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