secondary trend(redirected from Secondary Trends)
A situation in which a security, or the broader market, temporarily moves in the opposite direction from where it usually moves. For example, if a market is trending downward but moves upward for a brief period of time, this upward movement is said to be a secondary trend. Secondary trends are inevitable, but when trends are forming it is difficult or impossible to determine whether one is primary or secondary.
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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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.