DEFINITION of 'Trough'

The stage of the economy's business cycle that marks the end of a period of declining business activity and the transition to expansion.



In general, the business cycle is said to go through expansion, then the peak, followed by contraction, and then it finally bottoms out with the trough.

  1. Business Cycle

    The fluctuations in economic activity that an economy experiences ...
  2. Peak

    The highest point between the end of an economic expansion and ...
  3. Recession

    A significant decline in activity across the economy, lasting ...
  4. Contraction

    A phase of the business cycle in which the economy as a whole ...
  5. Bottom

    The lowest point or price reached by a financial security, commodity, ...
  6. Expansion

    The phase of the business cycle when the economy moves from a ...
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  1. What stage of the economic cycle is usually the best for an investor to enter the ...

    The best time during the economic cycle for an investor to enter the electronics sector is when he has confidently identified ... Read Full Answer >>
  2. How can an investor profit from the cyclical nature of the electronics sector?

    An investor can profit from the cyclical nature of the electronics sector in two ways. He can employ sector rotation, shifting ... Read Full Answer >>
  3. How are double exponential moving averages applied in technical analysis?

    Double exponential moving averages (DEMAS) are commonly used in technical analysis like any other moving average indicator ... Read Full Answer >>
  4. How reliable is the Fibonacci retracement in predicting stock behavior?

    The use of the Fibonacci retracement is subjective. There is no objective method to verify one application of the Fibonacci ... Read Full Answer >>
  5. How can a swing trader use a Fibonacci retracement?

    Swing traders can use the Fibonacci retracement to determine levels of support and resistance for a price on a chart, as ... Read Full Answer >>
  6. How does a swing trader use the stochastic oscillator?

    The stochastic oscillator is a momentum technical indicator used to indicate points of possible price reversals. Swing traders ... Read Full Answer >>

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