Trend Analysis
Trend analysis, most of the time, is used to take stock of what is going to happen in the future. It is a part of market research. But it is also used to gauge the uncertain events in the past. In the contemporary world, trend analysis refers to a science which studies changes in social patterns, which involve fashion, lifestyle and behavior of the consumers. Those who do this analysis dwell into what were the reasons for a specific trend and how did it impact the market or the environment related to that trend. In some fields, analysis of trend refers to more distinctly defined explanations. For instance, talk about project management and there the whole connotation of trend analysis is one which uses historical results in anticipation of the outcome. Companies prepare their marketing and production policies and marketing strategies based on this analysis.
Stock Trend Analysis
Stock trend analysis is the study of the pattern of the stock market – where it rose and where it dropped down, what was the profit to those who had invested in specific stocks and so on. One of the trend analysis methods as far as stock market is concerned is the moving average trends. It is used to measure individual averages. Certain number of days is fixed, lets say 320-day moving average is recorded by averaging the closing price of the last 320 days. In a few cases moving averages are exponentially weighted. However the crux of the matter remains the same. If the stocks are above the 200-day moving average, they are bought and sold on a long term basis. Another way to follow stock market trends is the presidential cycle. It has found out that the stock market tends to peak the highest in the year when there is a presidential campaign. These are the most common methods used in studying stock market trend.
Market Trend Analysis
When there is an analysis of how the market is behaving and what are the dominant patterns of th e market and the consumers, it is called as market trend analysis. Market research methods like a survey or an interview or observation of the consumer behavior help a great deal in getting significant insights in the flow of the market. It is a small part of what is called as PEST analysis – that is Political Economic Social and Technological analysis. This gives a complete perspective to a company including the various macro-environmental factors it has to take into consideration. This is a very common strategic tool to getting a hang of the market growth and decline, potential and direction for operations and the overall business position. Now which company would be more affected by which factors depend on the type of enterprise it is. For instance if it is a business to business company, social factors will be more relevant. On the contrary, a firm dealing with defense armaments would feel the pinch if something goes wrong in the geo-political affairs. Read more on market segmentation analysis.
Trend analysis, at the end of the day, is nothing but an anticipation and a rough prediction of things to come. Companies use trend analysis examples to a large extent to ensure maximum profit and advancement.
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