What is Detrend?
and Detrend is a strategy that focuses on reducing the amount of data related to the trend, so only key factors that motivate changes are identified. There are several different ways to determine what data are relevant to the trend and what not. Removal of what is sometimes referred to as red noise facilitates a project where the trend will take place for a short time, allowing investors to get better understanding what type of revenue expects and when to sold out and go to another investment.
Most methods used to identify Detrend include some kind of regression process. Here is the idea of looking back at how the trend has evolved and identifying the leadership of events or influences that continue to apply to this trend. In this process, Detrend is much easier to ignore additional events that are unlikely to continue feeding the trend, and portray the movement next month to six months. If it is to get a certain kind of return in thatAbout shorter periods, regression approach helps to determine adequate expectations for this return.
As a result of the use of a Detrend strategy, investors can get a better idea of what type of return can be adequately expected, based on factors that will support or discourage this trend in the short term. From this point of view, this type of data manipulation helps to eliminate any factors that are unlikely to be of value in the near future, still allowing these factors to cause a reasonable effect on the long -term horizon. For investors who are wondering whether the investment will come in handy under the current trend in about a month, this approach is often a great way to assess potential performance, make wise decisions when purchasing and selling securities and maximizing revenues for this period.
One of the Tools that is often used in this process is oscillatedTor price Detrend. It is essentially a simple tool that allows you to identify any main turnover in the long -term trend cycle, render when they affect, and thus determine whether any of these points will take place in the short term. Technical analysis of this kind makes it easier to determine the index of expectations for securities that are affected by a trend, and simplifies the process of predicting short -term results that can help investors decide on the right investment decisions.