The general direction of a market or asset’s price. Trends are identified by the occurrence of higher swing highs and lower swing lows for an uptrend or vice versa for a downtrend. Many traders follow the trend, attempting to profit from rising prices, while contrarians seek to identify reversals and trade against the trend. Trends are often identified by trendlines, though most professionals also use price action and technical indicators to help them determine if a trend is ending or reversing.
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Trending is what’s fashionable and in style at a given moment. It can be a particular fashion, music genre or even an activity like working out. A trend can also refer to a wider idea, such as a shift toward greener living or toward part-time employment.
A trend can also mean the overall direction a country or region is headed in. It could be a positive or negative direction depending on economic indicators and other factors.
Finally, a trend can also be used to describe a particular movement in time or space, such as the course of a river or road. It can also be used to estimate the number of years that a certain group of ancient kings might have ruled, using data such as how long other known kings ruled for.
Some trends are fun, some fabulous, and some appalling. But they all exist because of a fundamental human desire to try new things. There will always be a trend in the world, and it’s up to us to decide whether or not we want to follow it. To set a trend means to do something that becomes popular and fashionable, and that other people will then copy.
