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Simple English definitions for legal terms
major trend
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A quick definition of major trend:
A major trend is a long-term pattern in the stock market that shows a general increase or decrease in stock prices over an extended period. It can also refer to the direction of stock-market prices over several months. Essentially, it's a way to describe whether the stock market is going up or down over a long period of time.
A more thorough explanation:
A major trend is a long-term pattern in the stock market or in a particular stock. It refers to a general increase or decrease in stock prices over an extended period, typically several months or more. This trend is also known as a fundamental trend.
- If the stock market has been consistently increasing over the past year, this is a major uptrend.
- If a particular stock has been decreasing in value for several months, this is a major downtrend.
These examples illustrate how a major trend can be identified by looking at the overall direction of stock prices over a significant period. By analyzing these trends, investors can make informed decisions about buying or selling stocks.