What is trend in stock market? What are the different types of trends available in stock market?

Market trend helps the trader or investor to find buying or selling opportunities in stock market. Market trend is like behavior of stock market, which moves in one direction. Market trend can be classified as follow.

• ·         Secular market trend
• ·         Primary market trend
• ·         Secondary market trend

Secular Market Trend:

Secular market trends are generally lasts for many years like 15 to 20 years. They are long term market trends. Secular market trend can be further classified in bull secular market trend or bear secular market trend.

Primary Market Trend:

Primary market trend generally lasts for years. They can be classified further in bull market, bear market, market top, and market bottom.

Bull market trend generally indicates advances in the stock market over period of time while bear market indicates declines in stock market over the period of time. In market top or market high trend market will reach its highest point for some short period of time. Opposite of market high trend, in market bottom trend stock reaches to its bottom. These two trends are very difficult to find and leaves for short period of time.

Secondary term Market Trend:

Secondary market trend are leaves for very short period let say few weeks. These types of trends are like some minor changes in price direction. Secondary market trends are of two types one is correction and second is market rally.

Correction is a downward trend and declines the prices up to 5% to 20%. And another secondary trend is market rally sometimes called sucker’s rally or dead bounce cat. Market rally will increase the price of stock only up to 10% to 20%