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 >> 
What are some of the more common types of regressions investors can use?
The most common types of regression an investor can use are linear regressions and multiple linear regressions. Regressions ... Read Full Answer >> 
What types of assets produce negative portfolio variance?
Assets that have a negative correlation with each other produce negative portfolio variance. Variance is one measure of the ... Read Full Answer >> 
When is it better to use systematic over simple random sampling?
Under simple random sampling, a sample of items is chosen randomly from a population, and each item has an equal probability ... Read Full Answer >> 
What are some common financial sampling methods?
There are two areas in finance where sampling is very important: hypothesis testing and auditing. The type of sampling methods ... Read Full Answer >> 
How can I measure portfolio variance?
Portfolio variance measures the dispersion of returns of a portfolio. It is calculated using the standard deviation of each ... Read Full Answer >>
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