Charts & technicals
Trend
A sustained directional movement in price over time.
How it works
Trend-following strategies buy what is rising and sell what is falling, accepting many small losses in exchange for occasional large gains.
The return profile is the mirror of momentum crashes: positive skew, low win rate, and long stretches of frustration between the periods that pay.
Related terms
- MomentumThe tendency of recent winners to keep outperforming, and losers to keep underperforming, over months.
- Moving averageThe average price over a trailing window, used to smooth out day-to-day noise.
- SkewnessWhether a return distribution leans towards large gains or large losses.
- Technical analysisStudying price and volume history to inform decisions, rather than studying the business.
Mentioned in
More in Charts & technicals
- Bear market
- Bollinger bands
- Candlestick chart
- Relative strength index
- Golden cross and death cross
- Relative strength
- MACD
- OHLC
All 13 Charts & technicals terms · The full glossary, 433 terms
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