Price and volume fluctuations in the market that can confuse one's interpretation of market direction. Used in the context of equities, it is stock market activity caused by program trading, dividend payments or other phenomena that is not reflective of overall market sentiment. Also known as "market noise".


In general, the shorter the time frame, the more difficult it is to separate the meaningful market movements from the noise. Noise traders attempt to take advantage of market noise by entering buy and sell transactions without the use of fundamental data.

  1. Bear

    An investor who believes that a particular security or market ...
  2. Technical Analysis

    A method of evaluating securities by analyzing statistics generated ...
  3. Noise Trader

    The term used to describe an investor who makes decisions regarding ...
  4. Market Sentiment

    The overall attitude of investors toward a particular security ...
  5. Noise Trader Risk

    A form of market risk associated with the investment decisions ...
  6. Fundamental Analysis

    A method of evaluating a security that entails attempting to ...
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