Trend

Dictionary Says

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 Says

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 Definitions

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  • Market

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    • Technical Analysis

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    • Technically Strong Market

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    • Trend Analysis

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    • Trendline

      A line that is drawn over pivot highs or under pivot lows to show the prevailing direction of price. Trendlines are a visual representation of support and resistance in any time frame.
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    • Buy Weakness

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    • Sideways Trend

      Describes the horizontal price movement that occurs when the forces of supply and demand are nearly equal. A sideways trend is often regarded as a period of consolidation before the ...
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