Investor Glossary-trendInvestor Glossary-trendInvestor Glossary-trendInvestor Glossary-trendInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Trend

The HTML to link to this page
 

A trend is the overall general direction of movement in price (or other quantity) over a period of time. Trends may go up, down or sideways. They are important to investors, particularly those that use technical chart analysis to make trading and investing decisions. A trend may be spotted on a stock price chart simply by observing the general direction of prices on a stock chart. Another way to determine a trend is by drawing lines connecting the highest and/or lowest price peaks on a chart. If the lines drawn are higher on the right, that signals an up trend; if they are lower on the right, prices are falling in a down trend. If the lines appear to be flat, that is a sideways trend, meaning prices are stably staying in a range without much deviation. Some investors try to trade in the direction of the trend to minimize risk. These trend/following investors assume/believe that once prices begin to move in a trend, they tend to continue in that same direction. As an example, if prices are trending up (i.e. an uptrend), an investor might choose to enter a long position. If prices are trending down (i.e. a downtrend), that same investor might choose to open a short position.



Rate this trend definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: implied volatility, EBITDA, minority interest, VIX, class C shares, 1035 exchange, real GDP, 401a, labor relations, per diem, required rate of return, reverse mortgage, stock market close, inflation, LIBOR, margin rate, 144a, debt service coverage, diluted share, in escrow, dividends payable, retained earnings, option premium, Key Rate Duration, quality assurance, FTSE, liquidity ratio, irrevocable trust, command economy, deferred revenue, wholly-owned subsidiary, cancelled check, covered put, average price per share, APR, Zero Cost Collar, 1031 exchange, current ratio, FICO score, balance sheet, annual return, stock split, deferred tax, ex-dividend date, phantom income, ex-dividend, open position, risk management, limit order


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use