Trend

AAA

DEFINITION of 'Trend'

The general direction of a market or of the price of an asset. Trends can vary in length from short, to intermediate, to long term. If you can identify a trend, it can be highly profitable, because you will be able to trade with the trend.

Trend

INVESTOPEDIA EXPLAINS 'Trend'

As a general strategy, it is best to trade with trends, meaning that if the general trend of the market is headed up, you should be very cautious about taking any positions that rely on the trend going in the opposite direction.

A trend can also apply to interest rates, yields, equities and any other market which is characterized by a long-term movement in price or volume.

RELATED TERMS
  1. Buck The Trend

    When a security or a class of assets sees its market-driven price ...
  2. Trendline

    A line that is drawn over pivot highs or under pivot lows to ...
  3. Buy Weakness

    A proactive trading strategy in which a trader takes profits ...
  4. Average Directional Index - ADX

    An indicator used in technical analysis as an objective value ...
  5. Sideways Trend

    Describes the horizontal price movement that occurs when the ...
  6. Market

    1. A medium that allows buyers and sellers of a specific good ...
Related Articles
  1. Finding Value In A Sideways Market
    Active Trading Fundamentals

    Finding Value In A Sideways Market

  2. Finding The Trend With Aroon
    Active Trading

    Finding The Trend With Aroon

  3. Megatrends For Maximum Profits
    Active Trading Fundamentals

    Megatrends For Maximum Profits

  4. Retracement Or Reversal: Know The Difference
    Options & Futures

    Retracement Or Reversal: Know The Difference

comments powered by Disqus
Hot Definitions
  1. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  2. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  3. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  4. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  5. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  6. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
Trading Center