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.
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BREAKING DOWN '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.
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