April 26, 2005

Trend Definition Insights

Trend Definition Insights

A recent interchange from Seykota.com:

Question: "...how do I spot when the market is trending to a new level?"

Ed Seykota Answer: "A trend is a general direction in which something moves. To define a trend, pick a historical price, and subtract it from the current price. The difference tells you the direction and magnitude of the trend. A market has no inherent trend. It only has a price, now. A trend is a notion you bring to the market, depending on your own definition of trend."