Title: Noise
Headings: Noise
Noise
What Is Noise?
Key Takeaways
Understanding Noise
Noise and Time Frames
Causes of Noise
Having a System: The Alternative to Noise Trading

Content: He earned his Master of Arts and his Doctor of Philosophy in English literature at New York University. Learn about our editorial policies
Will Kenton
Updated Jan 10, 2020
What Is Noise? In a broad analytical context, noise refers to information or activity that confuses or misrepresents genuine underlying trends. In the financial markets, noise can include small price corrections in the market as well as price fluctuations–called volatility –that distorts the overall trend. However, market noise can make it challenging for investors to discern what's driving the trend and whether a trend is changing or merely experiencing short-term volatility. Key Takeaways
Noise refers to information or activity that confuses or misrepresents genuine underlying trends. In the financial markets, noise can include small price movements and corrections in that distort the overall trend. Market noise can make it difficult to determine what's driving a trend or if a trend is changing or merely experiencing short-term volatility. Understanding Noise
Noise can signify stock market activity caused by program trading, dividend payments or other phenomena that is not reflective of overall market sentiment. Dividends are cash payments that companies pay investors as a reward for owning their shares.