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secondary trend

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secondary trend

A movement of a security or of the entire market that is opposite the primary trend. For example, even during a bull market when the primary trend of stock prices is upward, downward secondary trends frequently occur. Although it is easy to differentiate primary and secondary trends in graphs that illustrate past price changes, it is much more difficult, and some people believe impossible, to determine if a trend is of a primary or secondary nature during the period in which it is being established.

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