Legal Definitions - fundamental trend

Definition: A fundamental trend, also known as a major trend, is a long-term pattern of stock market prices that shows a general increase or decrease over an extended period. It is a direction of stock-market prices over several months.

Example: For instance, if the stock market has been consistently increasing over the past few years, this would be considered a fundamental trend. On the other hand, if the stock market has been decreasing over the same period, this would also be a fundamental trend.

Explanation: The example illustrates how a fundamental trend is a long-term pattern of stock market prices that shows a general increase or decrease over an extended period. It is a direction of stock-market prices over several months. In the first example, the fundamental trend is upward, while in the second example, it is downward.