Zerodha Broker (Free Delivery)

India's No. 1 Broker with Best Software Trade @ Flat Rs 20

Open Instant Account

Trading and Investment Terms

Trend Analysis

Trend analysis can be defined as a procedure utilized in technical method of stock analysis that aims to anticipate the future changes is security price based on recently examined trend information.

Trend analysis depends on the concept that what has occurred in the past gives traders a hint of what will occur in the future.

There are 3 fundamental sorts of trends: short term, intermediate term and long term.

Trend analysis attempts to anticipate a trend, for example, a bull market run, and ride that trend until information recommends a trend reversal, like a bull-to-bear market.

Trend analysis is useful as moving along trends, and not against them, will generate profits for an investor.

A trend can be defined as the general direction the market is heading towards during a particular period of time.

A trend can either be an uptrend and downtrend, identifying with bullish and bearish markets, respectively.

While there is no predefined minimum measure of time needed for a direction to be viewed as a trend, the longer the direction is kept up, the more outstanding the trend.

Trend analysis is the method of attempting to see current trends so as to anticipate future ones and is viewed as a form of comparative analysis.

This can incorporate trying to decide if a present market market trend, such as gains in a specific market sector, is probably going to proceed, as well as whether a trend in one market area could  bring about a trend in another.

Despite the fact that an analysis may include a lot of information, there is no assurance that the outcomes will be right.