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Glossary of Option Terms: Trend

Trend

Definition: The overall direction of prices of assets or an entire market that can be thought of in different lengths, there are three main types:  short-, long- or intermediate-term; used in Technical Analysis. "The Trend is Your Friend"  If you are able to identify a trend within the market or an asset it can be nicely profitable as you trade with the trend.  Be cautious if the market is trending up towards taking on any positions that are relying too heavily on the trend turning around.

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