What is a trend?

A trend is the general direction of price movement over a period of time. Trends apply to all assets and all markets where there is a change in price or volume of purchases and sales.

The trend may be short-term, medium-term or long-term. There are profit opportunities in all trends, trend traders can follow trends that are more than 3 years old, for example, swing traders. Will hold stocks for a short period of time, possibly for a few weeks or just overnight.

Where have you heard about trends?

If you are an investor, or simply interested in the economy, you will often hear about market trends. Trends are usually talked about. Interest Rate when mentioned, but it may also apply to stocks.

The information you need to know about trends...

It is generally believed that four major related factors constitute the trend: government, international currency transactions, speculation and expectations, and supply and demand.

Trends are often analyzed using historical price movements versus current prices.

Trend trading strategies include when the stock appreciates. Long Position and when the stock depreciates short Position.

Trend traders calculate their market trends based on rising or falling risk of investors. These investors base their decisions on market data rather than the performance of individual companies. For them, "The trend is a friend" and think it is unwise to go against the trend, but there are still accidents. If the event does not follow the trend, investors may suffer losses.