Market trend

A market trend is a perceived tendency of the financial markets to move in a particular direction over time.[1] Analysts classify these trends as secular for long time-frames, primary for medium time-frames, and secondary for short time-frames.[2] Traders attempt to identify market trends using technical analysis, a framework which characterizes market trends as predictable price tendencies within the market when price reaches support and resistance levels, varying over time.

A future market trend can only be determined in hindsight, since at any time prices in the future are not known. This fact makes market timing inherently a game of educated guessing rather than a certainty. Past trends are identified by drawing lines, known as trendlines, that connect price action making higher highs and higher lows for an uptrend, or lower lows and lower highs for a downtrend.

"Bulls and Bears: The Great Wall St. Game" was a board game published in 1883
Statues of the two symbolic beasts of finance, the bear and the bull, in front of the Frankfurt Stock Exchange
  1. ^ Fontanills, George; Gentile, Tommy (2001). The Stock Market Course. Wiley. p. 91. ISBN 9780471036708.
  2. ^ Edwards, Robert D.; McGee, John; Bessetti, W. H. C. (July 24, 2018). Technical Analysis of Stock Trends. CRC Press. ISBN 978-0-8493-3772-7.

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