Trend is a direction, a tendency of developmentany process or phenomenon. This term is applied in various fields of activity and fields of knowledge: fashion, economics, marketing, foreign exchange market and others.
In the economy, the trend is a certainorientation of changes in economic indicators, which are established through the analysis and processing of data. With the help of this direction determine the tendency to economic decline or growth. A trend is also understood as a rectifiable calculation curve of the change in the value of the economic indicator. It is built by statistical and mathematical processing of information.
Trend in fashion is used in the context of the term"trend". In the fashion industry, the trend represents a trend in the style and design of clothing or other accessories. Trend always corresponds to fashion trends and enjoys a very large consumer demand. Fashion trends are formed with the help of public opinion, actively "unwind" the media and reflect the idea of the society about the lifestyle.
In Forex, a trend is one of the key concepts intechnical analysis, which characterizes a certain trend in the market. It is understood as the direction in which the market is moving, or the price fluctuations in a particular range. Prices can fall, grow or be neutral. On this basis, distinguish such varieties of trends:
- "Bearish" or descending - the price tends to fall, and the maximum prices are reduced.
- "Bullish" or ascending - the price tends to increase, and the lower levels of prices rise.
- Side trend or flat - price fluctuations occur in the same range.
With a downward trend, it is necessary to sellcurrency, with an ascending trend - to buy (in order to sell it in the future), and in case of a lateral trend - it is recommended that no operations in the market be made at all.
According to the term of validity, the trends are:
- 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. Can go in the direction that is opposite to the primary trend.
- Short-term - duration from a week to a month. Can go in the 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 the trend, theit is more difficult to predict its direction, as well as the moment when it will reverse. In the foreign exchange market, the direction of the trend is an extremely important indicator.</ p>