Tide

DEFINITION of 'Tide'

A metaphor for a long-term market trend. The tide would refer to trends in the market that have long term affects, rather than short term changes that may reverse in a short period. Issues such as inflation, high unemployment and/or high interest rates, would affect an economy's tide.

BREAKING DOWN 'Tide'

The ocean metaphors for market trends were coined by one of the market's first technical analysts, Robert Rhea.

Tides are often referred to in the context of triple screen trading. Using this system, a trader uses a longer-term chart, or market tide, as the basis for trading decisions. For instance, if a trader plans to trade daily he or she would examine the weekly moving average convergence divergence (MACD) histogram, as its slope provides indication of the market tide.

RELATED TERMS
  1. Stem The Tide

    An attempt to stop a prevailing trend. Sometimes referred to ...
  2. Ripple

    A term used by "The Dow Theory" author, Robert Rhea, to describe ...
  3. Trending Market

    A market that is trending in one direction or another. A bull ...
  4. Trend

    The general direction of a market or of the price of an asset. ...
  5. Bull Market

    A financial market of a group of securities in which prices are ...
  6. Trend Analysis

    An aspect of technical analysis that tries to predict the future ...
Related Articles
  1. Trading

    Triple Screen Trading System - Part 2

    Market tide is the basis for making trading decisions in this three-part system.
  2. Trading

    Triple Screen Trading System - Part 8

    Making use of the tightest stops in entering and exiting positions is what this three-part system is all about.
  3. Trading

    Triple Screen Trading System - Part 3

    Learn about market wave, the second screen in this three-part system.
  4. Trading

    Triple Screen Trading System - Part 7

    This system identifies the intraday price movements that indicates entry points for your buy or sell orders.
  5. Trading

    Triple Screen Trading System - Part 6

    Williams %R can confirm the strength of trends and warn of reversals. Find out how to use it as the second screen in this triple-screen system.
  6. Personal Finance

    5 Of The Strangest Items That Are Stolen

    Shoplifters have stolen some weird things. Here are some of the most bizarre.
  7. Trading

    Trading The MACD Divergence

    Currency traders can use this method to avoid stop-order triggers before the real reversal.
  8. Trading

    Trend Traders

    Trend traders can have a longer-term approach to trading. They will try to find a great up trending stock, buy it and ride it until the trend changes.
  9. Markets

    What does "Invisible Hand" Mean?

    Invisible hand is a reference to a famous metaphor used by economist and philosopher Adam Smith in his classic 1776 book entitled “An Inquiry into the Nature and Causes of the Wealth of Nations.”
  10. Trading

    Momentum Trading With Discipline

    This type of strategy demands controlled decision-making, requiring a continual refinement of entry and exit techniques.
RELATED FAQS
  1. Why is divergence of the Moving Average Convergence Divergence (MACD) important for ...

    Learn the importance of the moving average convergence divergence, or MACD, and understand why traders consider it an important ... Read Answer >>
  2. What are the best technical indicators to complement the Moving Average Convergence ...

    Learn the best technical indicators to use as part of a trading strategy in conjunction with the moving average convergence ... Read Answer >>
  3. How do I use Moving Average Convergence Divergence (MACD) for creating a forex trading ...

    Consider some forex trading strategies that can be designed using the exponential moving average (EMA) lines on the moving ... Read Answer >>
  4. What are the most common divergence strategies implemented in forex trading?

    Discover common divergence strategies that utilize either stochastics or the MACD, the two most frequently used momentum ... Read Answer >>
  5. How do technical analysts predict bull markets?

    Dive into the methods and assumptions of technical analysis, and see how analysts go about trying to predict a bull market ... Read Answer >>
  6. What are the differences between divergence and convergence?

    Find out what technical analysts mean when they talk about a market experiencing divergence or convergence and how they affect ... Read Answer >>
Hot Definitions
  1. Glass-Steagall Act

    An act the U.S. Congress passed in 1933 as the Banking Act, which prohibited commercial banks from participating in the investment ...
  2. Quantitative Trading

    Trading strategies based on quantitative analysis which rely on mathematical computations and number crunching to identify ...
  3. Bond Ladder

    A portfolio of fixed-income securities in which each security has a significantly different maturity date. The purpose of ...
  4. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  5. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  6. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
Trading Center