#Investor'sVocabulary: trend

One of the most important qualities of a successful investor is the ability to identify market trends to predict the growth or fall of the stock price.

A stock exchange trend is the upward or downward direction of the securities value change. To understand the dynamics, you need to build a trend line by combining the minimum or maximum values of quotes for a particular period of time.

When a trend line grows, it is called an upward or "bullish". This means that investors buy shares, playing in the long run, and therefore the maximum values of the securities price grow.

With a downward trend line, also called "bearish", the stock price falls, since investors sell more than buy.

Sideways trends reflect a slight fluctuation in the value of shares in situations where investors have not yet decided on a further strategy.

There are also long-term (1-2 years), medium-term (1-6 months) and short-term (7-30 days) trends.

The task of the investor is to understand how the value of securities will behave further and make a profitable deal. But it is not so easy to predict the direction of quotes, because there is still such a thing as "correction". That's what we will tell you in the next post of #investor'svocabulary.