To give you an idea, by 2020, more than 90% of companies should adopt data analysis tactics as a way to anticipate public behavior. This is great from a proactive point of view, because it allows the implementation of important measures based on what has been detected.
Those who are able to understand the impact of changes in the short, medium and long term will certainly be better prepared to meet consumer expectations. That is why in this post we highlight the importance of this topic for a successful corporate journey.
Want to know more? Keep reading and find out how this resource can be used to your company’s advantage!
What is trend analysis?
In short, it is a technique that allows you to whatsapp saudi arabia the direction of market movement. The methodology gathers past and present data, which helps in projecting future results.
Generally speaking, the market tends to move in the form of peaks — it rarely follows a straight line. Therefore, it is important to find out which direction these peaks point, as they form trends.
This has nothing to do with deductions: they are precise notes obtained from a broad view of the ideas, segments and facts of interest. In the end, this generates a strengthened line of reasoning, which leads to the anticipation of behaviors and situations such as:
consumer interests;
market niches;
areas and segments;
evolution of companies and brands;
opportunities;
styles and facts, among others.
What are the types?
Identifying a trend is one of the best ways to help you prepare for a specific action. After all, by trading in its favor, you can find out, for example, whether the product will be sold when it is high or low.
In this case, it is essential to know the formats of these rebounds:
high: occurs when the valleys and peaks are in an upward direction. In this case, the price level of the new formation, for example, is above the previous one;
bearish: unlike bullish, valleys and peaks are presented in a downward direction and, therefore, the price level of the new formation is below the previous one;
lateral: occurs when the movement is stable, that is, when there is equilibrium in the price level. This means that demand and supply are at the same level. You can also say that, in this case, there is no trend, since it does not point either up or down.
What are the lengths?
Trends, regardless of the direction they point, are classified into three categories, according to the duration of each one — primary, secondary and tertiary.
primary or main: can last for years and is therefore called a long-term trend;
secondary: the movement is formed along the main one. Thus, it is considered medium-term (lasting 1 to 3 months);
tertiary: when the movements around the main one are reduced, it is considered short-term (it can last a few days, less than 1 month).
In general, the main trend is composed of several secondary trends that, most of the time, move against it. The medium-term trend occurs when the long-term trend is upward and presents a downward correction in price movement, associated with an uptrend.
The short-term trend is usually present in the main and tertiary trends. Keep in mind that the longer the trend, the more important it becomes, as it can gather a significant amount of information.
In this case, a short-term trend certainly does not have the same weight as a long-term one, for example. In other words, a 5-year trend tends to be more relevant than one lasting a month or less.
What are the lines?
Trend lines are used to identify and show market movements and changes. Despite this, drawing them is not a complicated process and the way they move helps in defining positions and strategies. In this case, the data determines the type of line to be used.