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. Sideways Trend

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

    1. A medium that allows buyers and sellers of a specific good ...
  3. Technical Analysis

    A method of evaluating securities by analyzing statistics generated ...
  4. Technically Strong Market

    A market in which both open interest and prices are increasing ...
  5. Technically Weak Market

    A market in which open interest is increasing and prices are ...
  6. Trend Analysis

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

    Finding Value In A Sideways Market

  2. Active Trading

    Finding The Trend With Aroon

  3. Active Trading Fundamentals

    Megatrends For Maximum Profits

  4. Options & Futures

    Retracement Or Reversal: Know The Difference

Hot Definitions
  1. Capitulation

    When investors give up any previous gains in stock price by selling equities in an effort to get out of the market and into ...
  2. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  3. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  4. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  5. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  6. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
Trading Center