The Tendency of Indian Financial
market i.e Stock Market to move in a specific direction is termed as Market
trend in stock market. Trends can vary in length from short, to
intermediate, to long term. If you can identify a trend, it can be highly
profitable, because you will be able to trade with the trend.
The terms bull stock market and bear
stock market shows
us upward and downward market trends,
respectively, they describe
either the share market or specific sectors like steel and cement, auto are
showing up trend, down trend or sideways.
Traders can identify the
market trend using technical analysis.
This Market trends are
classified in to Secular trend, Primary trend, and Secondary trend.
Secular Trend
A Secular trend is a long term trend that can last for 5 to 20 years. In the Secular Bull trend we see larger bull market and smaller bear market. In the trend Market remains bullish and moves upwards, over a longer time. While in the case of Secular Bear Market the cash is completely opposite, here we seen long lasting bear market and small bull market for very short duration. The market remains bearish and move downwards.
A Secular trend is a long term trend that can last for 5 to 20 years. In the Secular Bull trend we see larger bull market and smaller bear market. In the trend Market remains bullish and moves upwards, over a longer time. While in the case of Secular Bear Market the cash is completely opposite, here we seen long lasting bear market and small bull market for very short duration. The market remains bearish and move downwards.
Primary Trend:
The Market which moves in
totality, i.e. All the sectors or maximum sectors are moving in one direction
for a period of year or more is termed as Primary trend. This primary trend can
be further classified in to Bull Market and Bear Market. In Bull market
confidence of investors grows and the economy shows clear signs of recovery and
development. In India Stock Exchange showed a bull market trend from April 2003
till Jan 2008. Sensex rose from 2900 levels to 21,000 levels in these five
years. In Bear market investor lose their confidence and move away from the
share market. Prices of stocks fall by 20% or more over two to three month
duration.
Secondary Trend
This are short term
changes in the price direction and usually last for few weeks for few month. Market
correction after making a high is also termed as Secondary trend. Here the
market correct by 5-10% in few days or few weeks and again start moving up. Sometimes
we see Bear Market rally, in this rally market moves 10%-15% up than the
prevailing prices and after some time again comes to same level. This bear
market rally is also called as Secondary Trend.
Market Trend analysis if
done properly, you can predict a trend like a bull market run and ride that
trend until data suggests a trend reversal. Trend analysis is helpful because
moving with trends, will lead to profit for an investor.
Market trend can also be
classified in three ways up trend, down trend and sideway trend.
Up Trend : When
market moves up, gradually for a longer duration, you can term that market trend
has up trend. The stock or index is moving up, making new
highs or higher highs
Down Trend: When markets starts falling and it falls by 15%-20% you can termed the market trend as down trend. The stock or index is moving downwards making lower lows
Down Trend: When markets starts falling and it falls by 15%-20% you can termed the market trend as down trend. The stock or index is moving downwards making lower lows
Sideway Trend: If market neither moves up nor moves down, is
termed as sideway’s trend. Markets neither making significant new highs nor new
lows.
If you have the right knowledge of tracking the market trend
and also the trend reversal at the right time, you are the one who can earn lot
of money from the share market.
