#PriceTrendAnalysis Trend analysis attempts to predict a trend, such as a bull market, and ride that trend until the data suggests a trend reversal, such as a bull to bear market. Trend analysis is useful because moving with trends, rather than against them, will result in profits for an investor. It is based on the idea that what has happened in the past gives traders insight into what will happen in the future. There are three main types of trends: short-term, medium-term, and long-term.
A trend is a general direction that the market is taking over a specific period of time. Trends can be both bullish and bearish, and relate to bull and bear markets, respectively. While there is no specific minimum amount of time required for a direction to be considered a trend, the longer the direction is maintained, the more noticeable the trend will be.
Trend analysis is the process of looking at current trends to predict future trends and is considered a form of comparative analysis. This can include trying to determine whether a current market trend, such as gains in a particular market sector, is likely to continue, as well as whether a trend in one area of the market might lead to a trend in another. Although a trend analysis can involve a lot of data, there is no guarantee that the results will be correct.