Price trend analysis is a fundamental tool for investors, market analysts and companies that seek to understand market behavior and predict future movements1 in the prices of assets, products or services. It involves the study and interpretation of relevant data and information to identify patterns and behaviors that indicate future market directions.2
Types of analysis:
Technical analysis: Uses charts and indicators to identify historical price patterns.
Fundamental analysis: Considers economic and financial factors that can impact prices.
Importance:
Predict future price behavior based on historical data.
Help companies adjust their marketing, production and sales strategies.
Helps investors make better decisions.
Use examples:
Financial markets: analysis of historical stock prices to identify trends in the performance of a company or sector.
Retail: analysis of consumer trends to predict demand for products and services.