Legal Definitions - major trend

A major trend is a long-term pattern in the stock market or in a particular stock. It refers to a general increase or decrease in stock prices over an extended period, typically several months or more. This trend is also known as a fundamental trend.

• If the stock market has been consistently increasing over the past year, this is a major uptrend.
• If a particular stock has been decreasing in value for several months, this is a major downtrend.

These examples illustrate how a major trend can be identified by looking at the overall direction of stock prices over a significant period. By analyzing these trends, investors can make informed decisions about buying or selling stocks.