A trend is a direction, a tendency to develop a process or phenomenon. This term is used in various fields of activity and fields of knowledge: fashion, economics, marketing, foreign exchange market and others.
In marketing, a trend is a trend that is noticed expertly and is stable over time. This term here is more like an analogue of the word trend. A trend is a certain direction in changes in various indicators: salary expenses or trade marketing
of the market volume, the number of visits, etc. The trend is determined by
processing statistical data for some indicator. It can go up or down.
In economics, a trend is a certain direction of changes in economic indicators, which is established through analysis and data processing. With this focus, a trend toward economic downturn or growth is determined. A trend also means a straightened calculated curve of a change in the value of an economic indicator. It is built by statistical and mathematical processing of information.
A trend in fashion is used in the context of the term “trend”. In the fashion industry, a trend is a trend in the style and design of clothing or other accessories. The trend is always in line with fashion trends and is in very high consumer demand. Fashion trends are formed with the help of public opinion, the media are actively “untwisted” and reflect the society’s idea of lifestyle.
On Forex, a trend is one of the key concepts in technical analysis that characterizes a certain trend in the market. It is understood as the direction in which the market is moving, or price fluctuations in a specific range. Prices may fall, rise or be neutral. On this basis, the following types of trends are distinguished:
- “Bearish” or downward - the price tends to fall, and the maximum prices are reduced.
- “Bullish” or upward - the price tends to increase, and the lower price levels rise.
- Lateral trend or flat - price fluctuations occur in the same range.
In a downward trend, it is necessary to sell currency, in an upward direction - to buy (in order to sell profitably in the future), and in case of a sideways trend - it is recommended not to carry out any market operations at all.
According to the validity period, trends are identified:
- Primary - duration from one year to two years. For large investors, this trend is of great importance.
- Medium-term - duration from one month to six months. It can go in a direction that is opposite to the primary trend.
- Short-term - duration from a week to a month. It can go in a direction that is opposite to the medium-term trend. This species is very sensitive to random events, less amenable to technical analysis and is of interest to private players.
The shorter the duration of a trend, the more difficult it is to predict its direction, as well as the moment when it reverses. In the forex market, trend direction is an extremely important indicator.