What is a trend?
What is a trend?
wikipedia:
Market trends reflect the general direction of prices or rates in financial markets.[1] Participants in a given market use price charts to observe these trends, and to identify investment and trading opportunities.
…have been searching far and wide for a book, site, page, trader who can define a trend. Nothing and none have lived up to the task… I have read many books and none have been able to answer my question either.
Ed Seykota answered(?):
Part of the problem you may be having in defining a trend is that trends do not exist. Like the past and the future, a trend is merely an idea. There is no such thing in nature. Trend is an idea about the overall average historical direction of prices; trend is a convenient way to view history; trends do not indicate the direction of prices in the moment of now, or even exist in the moment of now. Furthermore, The methods you use to define trend (to view history) are entirely up to you, so you get to define trend any way you wish; everyone may have a different idea of “the” trend. Let’s say you make a graph the volume of air in your lungs. If you define trend by the one-second average, your air volume trend may change several times per minute. If you define trend by a 90-day average, then your air volume trend may gradually increase for several decades and then decrease.
From my side want to say I`ve also noticed a few trends in nature…
- oranges tend to be the color orange,
- lions tend to eat smaller animals when they get hungry,
- when grey clouds roll overhead there’s a strong tendency to rain,
- to sail around the world you need to trend in one direction to make it,
- to get into space the best way to go is in a straight line … UP.
