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


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