Trending Market

DEFINITION of 'Trending Market'

A market that is trending in one direction or another. A bull market is trending upward, while a bear market is trending downward. A trending market can be classified as such for either the short, mid or long term.

BREAKING DOWN 'Trending Market'

Trending markets are of primary interest in technical analysis. Technical analysts maintain that trending markets occur with some degree of regularity and predictability. The ability to correctly discern these trends can have a substantial impact on investment returns.

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RELATED FAQS
  1. What are the differences between patterns and trends?

    Learn the difference between a pattern and a trend. Explore how technical analysts use patterns and trends to identify trading ... Read Answer >>
  2. 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 >>
  3. Does a strong trend (ADX > = 40) cause an increase in volatility?

    In technical analysis, there have been numerous indicators invented for identifying trends. One of the most common of these ... Read Answer >>
  4. Are we in a bull market or a bear market?

    A bull market is represented by a rising price trend, and a bear market is indicated by a falling price trend. Given this ... Read Answer >>
  5. How should a risk-averse investor build a retirement portfolio?

    Learn about a strategy to take advantage of a higher high failure on a chart, as well as the basics of trend trading and ... Read Answer >>
  6. Why is a divergence of momentum and trend important for traders and investors?

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