Definition Of Market Trend
Market trends simply mean the changes that occur in market over a period of time. Markets here clearly indicate financial markets. This market certainly moves in different directions and changes swings over time. These trends can be primary, secondary and secular. Secular trend represents long lasting durations, whereas medium and shorter durations are associated with primary and secondary trends. |
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Traders traditionally identify markets using technical analysis which can sometimes be predictable while sometimes changes with respect to pricing and resistance. There are different markets which describe an upward and downward movement in the trends. An upward movement means bull market whereas a downward movement means bear market.
Most secular markets will last for a good five to twenty-five years, and will involve a series of primary trends within it. It will also consist of several small bull markets and sometimes large bear markets. A small bull market and large bear market is known as secular bear market. Whereas a large bull and small bear market would mean a secular bull market. The US market was known to be a secular bull market between the years 1983 and 2007. Secondary markets are short duration markets with changes in price. It will last for two weeks or two months.
Correction and bear market rally are types of secondary market. Primary market trend would mean markets that undergo changes for one year or more. A bull market also is closely associated with increased anticipation and investing period when prices increases. Bear market on the other hand simply denotes decline in stock market with a slow transition from high optimism level to pessimism.
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Market trends are associated with market conditions depicting in a particular period. The market trends can also be classified into primary, secondary and secular market. The trend analysis will always allow the investor to collect data over a period of time. You will need to understand market trend analysis if you happen to be researching over a survey or conducting one. The changes that happen with respect to time and price need to be understood clearly.