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detrend

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Financial Dictionary

Detrend

In forecasting models, the process of removing the effects of accumulating data sets from a trend to show only the absolute changes in values and to allow potential cyclical patterns to be identified. This is done using regression and other statistical techniques.

Investopedia Commentary

Different charting services include the use of a detrend price oscillator, which gives traders a method for analyzing shorter-term cyclical patterns. These patterns can then be used to more effectively identify major turning points in the longer-term cycle.

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Economic Indicators to Know

See also: Business Cycle, Coincident Indicator, Consumer Confidence Index - CCI, Expectations Index, Forecasting, Lagging Indicator, Leading Indicator, Regression, Technical Analysis

Also spelled: De-trend, detrending, de-trending

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