What is a market trend?

A market trend is a perceived tendency of financial markets to move in a particular direction over time. Analysts classify these trends as secular for long time-frames, primary for medium time-frames, and secondary for short time-frames.

What is a trend & why is it important?

Trend Definition – What is a Trend? By definition, a trend is the general direction in which market values or the price of an asset move. Trends can be upwards ( bullish ), downwards ( bearish) or sideways ( flat ).

What are the different types of trends?

There are three main types of trends: short-, intermediate- and long-term. A trend is a general direction the market is taking during a specified period of time. Trends can be both upward and downward, relating to bullish and bearish markets, respectively.

What is trend following?

Trend following is a trading system based on using trend analysis and following the recommendation produced to determine which investments to make. Often, the analysis is conducted via computer analysis and modeling of relevant data and is tied to market momentum. Trend analysis can offer several advantages for investors and traders.