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  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: UPDATE cache_filter SET data = '<p>The term <b class=\"normalize\">market trend analysis</b> is used by many financial professionals but can have a different meaning, depending on who you talk to. At its most basic level, <b class=\"normalize\">trend analysis</b> is defined as the collection of historical data for the purposes of making future predictions or forecasts. It is believed that when certain conditions continue to present themselves with a similar outcome, there is a higher probability for these conditions to yield the same outcome in the future.</p><p>At the highest level, many pundits will pontificate on the future prospects for the economy through economic trend analysis. Inflation, employment data, housing, consumer spending, consumer confidence, and interest rates are just some of the key indicators that they will track closely. For example, it is historically observed that an <a title=\"inverted yield curve\" href=\"/bonds/inverted-yield-curve.html\">inverted yield curve</a> (short term interest rates higher than long term interest rates) typically precedes a period of economic recession. Similarly, inflation trend analysis will show that the economy goes through cycles of increasing inflation followed by decreasing inflation. During high periods of <a title=\"inflation\" href=\"/bonds/inflation.html\">inflation</a>, traders tend to move assets into inflation hedges such as gold and oil. It is important to understand the implications of economic trend analysis as it can help you understand where to keep your assets.</p><p><b class=\"normalize\">Economic trend analysis</b> is the first part of your investment picture; it provides the backdrop for the type of economic environment you will be investing in. When you understand where to invest your assets, a more sector specific or company specific analysis should be performed. <b class=\"normalize\">Stock trend analysis</b> and financial trend analysis are the two main forms of <a title=\"investment analysis\" href=\"/stocks/investment-advice.html\">investment analysis</a> that can be performed.</p><p>Stock trend analysis, or technical analysis, is the art of studying previous price patterns and making forward looking assumptions on where price will head. Technical analysis has become increasingly popular among the <a title=\"day trading\" href=\"http://www.mysmp.com\">day trading</a> and <a title=\"swing trading\" href=\"/technical-analysis/swing-trading.html\">swing trading</a> crowd with the vast availability of historical data. Traders can slice and dice this data in any way they please, uncovering repeatable patterns and back testing <a title=\"trading strategies\" href=\"/stocks/trading-strategies.html\">trading strategies</a> without putting real money to work. This is truly a study of human emotion and money flow versus a study of a company&rsquo;s <a title=\"balance sheet\" href=\"/fundamental-analysis/balance-sheet.html\">balance sheet</a>.</p><p>Conversely, <b class=\"normalize\">financial trend analysis</b> is the art of analyzing a company&rsquo;s financial performance trends. Financial performance can be gauged against prior periods or even against industry peers. This form of financial trend analysis allows investors to understand if a company is relatively improving or not, year over year. Additionally, this analysis allows companies to strategically plan and budget future initiatives and put pre-emptive measures in place to tackle emerging financial issues before they occur. Some of the most common analysis metrics are <a title=\"EPS\" href=\"/fundamental-analysis/earnings-per-share.html\">EPS</a>, <a title=\"p/e ratio\" href=\"/fundamental-analysis/price-to-earnings-ratio.html\">P/E ratio</a>, A/R turnover, operating margins, and cost of capital to name a few.</p><h2>Conclusion</h2><p>Remember, past performance is no guarantee for future results. Each situation should be taken on a case by case basis as it presents its own set of unique circumstances. The biggest mistake you can make is to throw all your chips at an investment which you believe will go up because history says it &ldquo;should&rdquo;.</p><br />', created = 1526901231, expire = 1526987631, headers = '', serialized = 0 WHERE cid = '1:576e180e044e6df6c2c8706483dbdcd2' in /var/www/html/mysmp/includes/cache.inc on line 109.
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  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: UPDATE cache_filter SET data = '<p>Tim Ord is a technical analyst and expert in the theories of chart analysis using price, volume, and a host of proprietary indicators as a guide to navigating through the markets.</p><p>Tim is in the Timers Digest Top 10 Rankings for his newsletter and is the Author of \"The Secret Science of Price and Volume”. Ord also contributes to the Stocks &amp; Commodities Magazine.</p>', created = 1526901231, expire = 1526987631, headers = '', serialized = 0 WHERE cid = '1:2fda152348bc4ae73408bf0b82608e9a' in /var/www/html/mysmp/includes/cache.inc on line 109.
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  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: UPDATE cache_filter SET data = '<p>Tradingsim.com provides the ability to simulate day trading 24 hours a day from anywhere in the world. TradingSim provides tick by tick data for every symbol on the Nasdaq, NYSE, and AMEX.</p><p>Use the fast forward and pause features to analyze your trading decisions with more precision.</p>', created = 1526901231, expire = 1526987631, headers = '', serialized = 0 WHERE cid = '1:4dd69529abed14a5c1c8f3ba7e22f8eb' in /var/www/html/mysmp/includes/cache.inc on line 109.
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Trend Analysis

The term market trend analysis is used by many financial professionals but can have a different meaning, depending on who you talk to. At its most basic level, trend analysis is defined as the collection of historical data for the purposes of making future predictions or forecasts. It is believed that when certain conditions continue to present themselves with a similar outcome, there is a higher probability for these conditions to yield the same outcome in the future.

At the highest level, many pundits will pontificate on the future prospects for the economy through economic trend analysis. Inflation, employment data, housing, consumer spending, consumer confidence, and interest rates are just some of the key indicators that they will track closely. For example, it is historically observed that an inverted yield curve (short term interest rates higher than long term interest rates) typically precedes a period of economic recession. Similarly, inflation trend analysis will show that the economy goes through cycles of increasing inflation followed by decreasing inflation. During high periods of inflation, traders tend to move assets into inflation hedges such as gold and oil. It is important to understand the implications of economic trend analysis as it can help you understand where to keep your assets.

Economic trend analysis is the first part of your investment picture; it provides the backdrop for the type of economic environment you will be investing in. When you understand where to invest your assets, a more sector specific or company specific analysis should be performed. Stock trend analysis and financial trend analysis are the two main forms of investment analysis that can be performed.

Stock trend analysis, or technical analysis, is the art of studying previous price patterns and making forward looking assumptions on where price will head. Technical analysis has become increasingly popular among the day trading and swing trading crowd with the vast availability of historical data. Traders can slice and dice this data in any way they please, uncovering repeatable patterns and back testing trading strategies without putting real money to work. This is truly a study of human emotion and money flow versus a study of a company’s balance sheet.

Conversely, financial trend analysis is the art of analyzing a company’s financial performance trends. Financial performance can be gauged against prior periods or even against industry peers. This form of financial trend analysis allows investors to understand if a company is relatively improving or not, year over year. Additionally, this analysis allows companies to strategically plan and budget future initiatives and put pre-emptive measures in place to tackle emerging financial issues before they occur. Some of the most common analysis metrics are EPS, P/E ratio, A/R turnover, operating margins, and cost of capital to name a few.

Conclusion

Remember, past performance is no guarantee for future results. Each situation should be taken on a case by case basis as it presents its own set of unique circumstances. The biggest mistake you can make is to throw all your chips at an investment which you believe will go up because history says it “should”.


Tim Ord
Ord Oracle

Tim Ord is a technical analyst and expert in the theories of chart analysis using price, volume, and a host of proprietary indicators as a guide...

Tradingsim.com
Day Trading Simulator

Tradingsim.com provides the ability to simulate day trading 24 hours a day from anywhere in the world. TradingSim provides tick by tick data for...

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