trend analysis

Trend Analysis

An aspect of technical analysis that tries to predict the future movement of a stock based on past data. Trend analysis is based on the idea that what has happened in the past gives traders an idea of what will happen in the future.

Trends can be thought of as three main types, short, intermediate and long term.

Notes:

Trend analysis tries to predict a trend like a bull market run and ride that trend until data suggests a trend reversal (bull to bear market). It is helpful in identifying trends as moving with them, and not against them will lead to profit for an investor.

See also: Bear Market, Bull Market, Reversal, Technical Analysis, Technically Strong Market, Technically Weak Market, Trend, Trendline

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trend analysis

The analysis of a variable's past value changes to determine if a trend exists and, if so, what the trend indicates. A technical analyst may graph a stock's price throughout a period of time to determine whether a trend has been established. Analysts often attempt to determine if trends exist for a firm's earnings per share. Compare ratio analysis.