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 shorterterm cyclical patterns. These patterns can then be used to more effectively identify major turning points in the longerterm cycle.
RELATED TERMS

Business Cycle
The fluctuations in economic activity that an economy experiences ... 
Coincident Indicator
A metric which shows the current state of economic activity within ... 
Lagging Indicator
1. A measurable economic factor that changes after the economy ... 
Forecasting
The use of historic data to determine the direction of future ... 
Consumer Confidence Index  CCI
A survey by the Conference Board that measures how optimistic ... 
Leading Indicator
A measurable economic factor that changes before the economy ...
RELATED FAQS

What are leading, lagging and coincident indicators? What are they for?
An indicator is anything that can be used to predict future financial or economic trends. For example, the social and economic ... Read Full Answer >> 
How do you calculate GDP with the income approach?
The income approach to measuring gross domestic product (GDP) is based on the accounting reality that all expenditures in ... Read Full Answer >> 
What is the difference between earnings and income?
The differences between earnings and income change depending on the context. Technically speaking, personal earnings are ... Read Full Answer >> 
What is the formula for calculating beta?
Beta is a measure used in fundamental analysis to determine the volatility of an asset or portfolio in relation to the overall ... Read Full Answer >> 
How can I use a regression to see the correlation between prices and interest rates?
In statistics, regression analysis is a widely used technique to uncover relationships among variables and determine whether ... Read Full Answer >> 
How do I use the rule of 72 to estimate compounding periods?
The rule of 72 is best used to estimate compounding periods that are factors of two (2, 4, 12, 200 and so on). This is because ... Read Full Answer >>
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