Tide

AAA

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.

INVESTOPEDIA EXPLAINS '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. Uptick

    A transaction for a financial instrument that occurs at a higher ...
  2. Ripple

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

    An investor who believes that a particular security or market ...
  4. Moving Average Convergence Divergence ...

    A trend-following momentum indicator that shows the relationship ...
  5. Technical Analysis

    A method of evaluating securities by analyzing statistics generated ...
  6. Bull

    An investor who thinks the market, a specific security or an ...
Related Articles
  1. Simple Moving Averages Make Trends Stand ...
    Active Trading Fundamentals

    Simple Moving Averages Make Trends Stand ...

  2. Four-Week Rule Boosts Winning Trades
    Trading Systems & Software

    Four-Week Rule Boosts Winning Trades

  3. Support And Resistance Basics
    Active Trading Fundamentals

    Support And Resistance Basics

  4. Elliott Wave Theory
    Forex Education

    Elliott Wave Theory

comments powered by Disqus
Hot Definitions
  1. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  2. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  3. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  4. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  5. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
  6. Limit-On-Open Order - LOO

    A type of limit order to buy or sell shares at the market open if the market price meets the limit condition. This type of ...
Trading Center