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Simple English definitions for legal terms
market trend
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A quick definition of market trend:
A market trend refers to the general direction of stock prices over a period of several months. It can be either an increase or decrease in prices and can be seen as a pattern in the stock market as a whole or in a particular stock. A major trend is a long-term trend of the stock market, which can last for an extended period. It is also known as a fundamental trend.
A more thorough explanation:
A market trend refers to the general direction of stock market prices over a period of time. It can be a short-term trend, lasting a few days or weeks, or a long-term trend, lasting several months or even years.
- A major trend is a long-term trend of the stock market. For example, if the stock market has been consistently increasing over the past few years, this would be considered a major uptrend.
- A market trend can also refer to a price pattern in a particular stock. For example, if a stock has been consistently increasing in price over the past few weeks, this would be considered an uptrend for that stock.
These examples illustrate how market trends can be used to analyze the overall direction of the stock market or a particular stock. By identifying trends, investors can make informed decisions about buying or selling stocks.