What is the trend analysis?
The trend line analysis is also known as regression analysis. In this type of analysis, the line is plotted between two or more points on the graph. These points represent certain data, such as the price of individual shares in a given moment. Analysts use the overall direction or slope of the trend line to predict changes or determination of diameters. For example, professionals of real estate real estate can set house sales prices according to home function and location in the neighborhood to determine the average market price. Some statistical programs can handle stored data according to several variables. Differences in the average price for two bedrooms that have a fireplace versus houses that are not immediately compared to the analysis of computer trend lines.Y axis. If a stock analyst wants to determine the average trend of the company's share price, he portrays points on the graph, each point representing the daily stock price. The price will most likely be brought on the Y axis while the date will be carried on the X -axis. The graph displays a number of fluctuating dATTE points according to the increase and decrease in the price of the company's shares over time.
trend lines do not necessarily combine between all data points in the graph. One of the most important factors of the trend line analysis is validity. To be reliable, the trend line should go through data points that are not distributed unevenly. This ensures that short -term tips or falls are not used to predict long -term changes.
In most cases, the precise analysis of trend lines will be portrayed by the boundary between the data points that are evenly space from each other. The line usually indicates either a slope up or down. Occasionally the line slopes for a period of time and then begins to reflect the trend down. For example, the company's net profit over the past 20 years may show a total increase over five years to ten and then show a total decline between 15 and 20 years. Analysts usually predictAim threatening changes using breaks in the line trend.
predicting changes in aggregates or trends is a common practice in economics. Analysts often use data such as gross domestic product, hiring trends, consumer prices 'indexes and commercial orders' activities to predict changes in the overall health of the economy. In addition to predictions, the analysis of the trends of these data may document the period of economic expansion or recession.