What is Stock Trend?
Trend is the direction that a stock's price is moving in relative to where it has been in the past. Simply put a stock's trend refers to the direction in which the share price is moving. Stock prices can move up- or downwards based on bullish or bearish market sentiments. Unless a stock is traded in very low volume, generally its price does not move in a straight line because stock price is subject to volatility depending on supply and demand in the stock market.Stock Prices and in par with them the trends rise to peaks and fall to troughs. Trends represent the direction of those peaks and troughs that constitute a market's trend.
STOCK TRENDS
» An uptrend is traceable trough ascending peaks and troughs that means higher highs and higher lows.
» Oppositely the downtrend is made up of descending peaks and troughs on the chart with lower highs and lower laws.
» When the stock trades within a fairly steady price range without shaping any distinct trend over longer period of time, they say the stock goes sideways.
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Trends allow you to,
» know the direction the market is heading; upward, downward or sideways
» provide you navigation about potential stock price- and stock market directions.
The majority of investors, especially Day Traders continuously study previous and current market trends that as a rule align with circumstances in the stock market. Most traders assume, trends help them predict imminent stock price actions, and they can capitalize these movements as long as trends don't reach their peaks or troughs - depending on long or short trades - or they can identify trend-turns as well as breakouts where profits are ahead.
Trend trading and breakout trading are very popular amongst Day Traders. These Intraday Trading techniques sound simple but it's grueling to materialize them due to laborious researches, analysis and brainstorming when putting the results coherently together. The key hurdle for your success when making all necessary steps to amass the most information from Market News and weighing out a whole bunch of pro's and con's, is the time factor. As an investor, especially if you trade stocks intraday, you have limited time to conduct your daily routine. In addition, for a Day Trader, trends often make no contribution to profitability in bear market because uptrend's strength may evaporate in the thin air if an overall downtrend keeps moving ahead in the stock market.
DAY TRADERS AND TRENDS
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