Investopedia

Polynomial Trending

Filed Under » ,
Dictionary Says

Definition of 'Polynomial Trending'

A type of trend that represents a large set of data with many fluctuations. As more data becomes available, trends often become less linear and a polynomial trend takes its place. Graphs with curved trendlines are generally used to show a polynomial trend.
Investopedia Says

Investopedia explains 'Polynomial Trending'

For example, polynomial trending would be apparent on the graph that shows the relationship between the profit of a new product and the number of years the product has been available. The trend would likely rise near the beginning of the graph, peak in the middle and then trend downward near the end. If the company revamps the product late in its life cycle we'd expect to see this trend repeat itself. This type of chart, which would have several waves on the graph, would be deemed to be a polynomial trend.

Articles Of Interest

  1. Peak-and-Trough Analysis

    Prices never move in straight lines, so it's time to learn about this powerful trend-following technique.
  2. Where Top Down Meets Bottoms Up

    Find the investing "sweet spot" by combining these two styles.
  3. Arbitrage Squeezes Profit From Market Inefficiency

    This influential strategy capitalizes on the relationship between price and liquidity.
  4. Sell In May – Yay Or Nay?

    Seasonal timing in the market, best personified by the adage, “Sell in May – Go away,” has long been the subject of debate among investors. The question remains: Is there anything to it?
  5. Quants: The Rocket Scientists Of Wall Street

    Blend math, finance and computer skills to command a high - and well deserved - salary.
  6. Buying The Upward Trend Channel Bounce

    Find out how to set up the trades for four stocks that are moving higher within well-defined trend channels.
  7. Support And Resistance Basics

    Understanding the concept of Support and Resistance in trading can drastically improve your short-term investing strategy.
  8. Calculating The Means

    Learn more about the different ways you can calculate your portfolio's average return.
  9. R-Squared

    Learn more about this statistical measurement used to represent movement between a security and its benchmark.
  10. Mitigating Downside With The Sortino Ratio

    Differentiate between good and bad volatility with the Sortino Ratio.
comments powered by Disqus
Marketplace
Hot Definitions
  1. Validation Period

    The amount of time necessary for the premium on an insurance policy to cover the commissions, the cost of investigation, medical exams and other expenses associated with the issuance of the policy.
  2. Winner's Curse

    Because of incomplete information, emotions or any other number of factors regarding the item being auctioned, bidders can have a difficult time determining the item's intrinsic value. As a result, the largest overestimation of an item's value ends up winning the auction.
  3. Glocalization

    A combination of the words "globalization" and "localization" used to describe a product or service that is developed and distributed globally, but is also fashioned to accommodate the user or consumer in a local market.
  4. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty loss, where a loss has been incurred by taxpayers who reside in an area that has been designated as a federal disaster area by the President.
  5. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.
  6. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.
Trading Center