Market Trends 1
Introduction
Market trends often refer to “the general movement of an investment market.”
(Rethinking Marketing, 2008) Different industries focus on the different trends in their
individual markets. People who are involved in the success of their businesses make a conscious
effort to identify the current type of movement that is occurring as well as predict how long the
trend is likely to last. By precisely assessing and predicting trends, determining which type of
investments to buy or sell can be seen as an easier process.
Market Trends 2
The act of recognizing and identifying trends within a market relies on the idea of
efficient market hypothesis. This concept includes understanding financial markets supply and
how it is the building blocks that are needed to decide on how to sell or buy because it’s possible
to research the features leading to the present market situation. If one takes well-organized
market hypothesis into consideration, it is likely to understand how the market reached its
current position.
Investors often tend to look at trends in three categories: Primary trends, Secondary
trends, & Secular trends. Primary trends are movements that apply to the majority of stocks
traded within a particular segment of the market. A primary trend will last for at least a year if
not a bit longer. Secondary trends happen and reverse within a shorter amount of time such as
