Market Trend
A market trend refers to the general direction in which the price of an asset, security, or market as a whole is moving over a specified period. Trends can be upward (bullish), downward (bearish), or sideways (neutral). Understanding market trends is crucial for traders and investors, as they can help inform decisions on when to buy, sell, or hold assets. Trends are often analyzed using technical indicators, charts, and patterns.
Example
A sustained increase in stock prices over several months is considered an upward market trend, reflecting investor optimism and strong economic conditions.
Key points
• The general direction in which the price of an asset or market is moving over time.
• Trends can be upward (bullish), downward (bearish), or sideways (neutral).
• Understanding trends helps investors make informed decisions on buying, selling, or holding assets.
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