As we discussed an earlier section, stock prices can be volatile in the short term. They don’t necessarily move in a straight line. However, as you zoom out and look at slightly long-term price patterns, you will discover a better defined market trend. In general understanding, a trend is the broad upward or downward movement of a stock’s price over time. Upward movement is called an uptrend, while those which move lower over a period of time are said to be in a downtrend. Investors have a tendency of buying stocks that are seemingly in an uptrend and selling the ones in a downtrend.
When we hear the word ‘peak’ we think of a mountain. Exactly the same way, if you look at a stock chart, you can see many hills and mountains. The tip is called a peak, even in stock market parlance. Just like the mountain peak is the highest point, the stock price peak or top is the highest price the stock touched.
Turn the mountain upside down and you get a valley or a trough. It is the lowest point on ground. Exactly the same way, stock charts too have a ‘bottom’ or ‘trough’ – the lowest price the stock fell to.
start an enquiry?
THOSE STOCK RETURNS THAT ARE CALLED MULTIBAGGER STOCK ARE CALLED.
Want to tell us something?