Trend Analysis

Trend analysis involves examining data over a period of time to identify patterns, tendencies, or changes that occur. This method helps in understanding the direction in which certain variables are moving and allows for predictions or forecasts based on historical data. For instance, in financial analysis, trend analysis may involve looking at a company's financial statements over several years to discern whether revenues, expenses, or other key metrics are increasing, decreasing, or remaining stable over time. Additionally, trend analysis is a technique utilized in technical analysis to predict future stock price movements by examining recent trend data.