Trending the market
Trending the market
Two main ways to trend historical data - based on its characteristics, data availability and/or user's knowledge
When reviewing historical data there are four key things to look out for:
- Recent events that have changed the trend
- Aberrant observations, or single fluctuations that could distort the trend line
- Structural breaks in the data that render the trend up to that point superfluous
- Seasonality
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