what is trend analysis 
trend analysis is a technique used in technical analysis that attempts to predict future stock price movements based on recently observed trend data trend analysis uses historical data such as price movements and trade volume to forecast the long term direction of market sentiment investopedia michela buttignolunderstanding trend analysistrend analysis tries to predict a trend such as a bull market run and ride that trend until data suggests a trend reversal such as a bull to bear market trend analysis is helpful because moving with trends and not against them will lead to profit for an investor it is based on the idea that what has happened in the past gives traders an idea of what will happen in the future there are three main types of trends short intermediate and long term a trend is a general direction the market is taking during a specified period of time trends can be both upward and downward relating to bullish and bearish markets respectively while there is no specified minimum amount of time required for a direction to be considered a trend the longer the direction is maintained the more notable the trend trend analysis is the process of looking at current trends in order to predict future ones and is considered a form of comparative analysis this can include attempting to determine whether a current market trend such as gains in a particular market sector is likely to continue as well as whether a trend in one market area could result in a trend in another though a trend analysis may involve a large amount of data there is no guarantee that the results will be correct there are three main types of market trend for analysts to consider 