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: Noise
Investing Markets
Noise
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Will Kenton has 10 years of experience as a writer and editor. He developed Investopedia's Anxiety Index and its performance marketing initiative. He is an expert on the economy and investing laws and regulations. Will holds a Bachelor of Arts in literature and political science from Ohio University. He received his Master of Arts in economics at The New School for Social Research. 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.