Trend analysis actually tries to predict bull and bear phases in the markets. And when you move with the trends then you can profit from the markets. Basically the markets have three types of trends: Short, intermediate and long term trend. In trend analysis we analyze that if the market is in a bull phase the stock prices tend to soar upwards. And when the bears rule the market, then the stock prices plunge downwards. The markets pass through all these phases and trend reversals.
Now they can be easily identified by figuring out the number of buyers and sellers in the market. If the number of buyers is more than the sellers then certainly the market is in a uptrend or bull phase. And this is the best time to invest money in the markets. On the other hand if the market has more sellers than who are investing, then the market is said to be in bear phase. In bull phases the volumes of investment is generally higher than in the bear market.
Nowadays the global markets are a lot interdependent. Like the world over people watch closely the movement of Dow, Nadaq, S&P 500. Because the stock markets of different countries move in tandem with the US markets most of the time, barring any local uncertainties going on. So always we should watch the market trends and then invest so that we can make profits from the market in a long term basis
Trend Analysis for FREE can be received at http://www.WatchTheTrend.com.
Steve Hoven is a trader and reviewer of trading products.
Article Source: http://EzineArticles.com/?expert=Steven_Hoven
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