Share Market Trends


Share market trends are characterized by framework of analyzing technical aspects and identifying markets by traders so to predict a price in the market when price reaches hold up and fighting levels in market for particular period of time.

Share market trends means that the format, the style, which is followed by the people in particular direction due to the style first owned by a known person  in a financial market. Depending on the time duration the share market trends are classified in three forms: secular for long time duration, primary for medium time duration and secondary for short time duration.

Share market trends are characterized by framework of analyzing technical aspects and identifying markets by traders so to predict a price in the market when price reaches hold up and fighting levels in market for particular period of time.

The first share market trend is secular market which is usually a series of primary market which spans for a period of 5-25 years which is quite a long term trend. A secular bull market consists of larger bull market and smaller bear market, while larger bear market and smaller bull market forms the part of the secular bear market.

The bull market or the secular bull market is the up-ward moving market and it is mentioned as ‘bullish’. This ‘bullish’ share market trends was owned by US from 1983 to 2000 along with the down fall of dot-com from 2000 to 2002 and crash in 1987. Examples of bull market are SENSEX, BSE index during April 2003 to January 2008 when points jumped to 21000 from 2900.

On the other hand the bear market is sluggish or down-ward moving market and is mentioned is ‘bearish’. Over the period of time the stock market decreases. People tend to be pessimists and fear which is a transition from the high end investor. In gold market ‘bearish’ share market trend was observed from January 1980 to June 1989. During this time gold market fell to ($9/gm) from ($30/gm) which resulted in the depression of great commodities. Examples of bear market are 1929 Wall Street crash and 89% decrease in percentage of points of Dow Jones average in industries.

The second share market trends are the changes in the primary market for short duration time from few weeks to few months. Secondary market is also called as market correction. Around 5% to 25% decline of price takes place during correction. Though correction is a downward market but it is not at all a bearish market. In another trend the market keeps on increasing around 10% to 20% and it maintains the rate this is called bear market rally or dead cat bounce or sucker’s rally. After the crash of 1929 stock market till 1932 and again in 1960 and 1970′s in Dow Jones index bear rally took place. While experiencing a long term down trend the in 1980s Japanese Nikkei faced multiple bear market rallies.

The third share market trend is primary market trend which is most favorite among the investors and it lasts for about one year or further.

During the last few centuries the modern form of stock exchange was developed. While there are beliefs that the earliest interest bearing loans were Mesopotamian clay tablets. When Dutch East India Company started joint-stock company with tradable shares in 1602 it is believed to be the beginning of the trading at Amsterdam. Amsterdam Stock Exchange Company is considered to be one of the oldest trading companies even though it does not exist any more. To form Euro-next it was merged with Paris Stock Exchange Company and Brussels stock exchange in September 2000, which was then said to be called as Amsterdam Euro next.

In order to know the working of the share market one must learn the share market trends by selling and buying shares with good sense of timing. First and foremost step to understand the trends in market is to know the different types of patterns which hare the movements of the market which includes rise and fall of the supplies goods. It is important to concentrate on the market when it is growing and when it is falling. If one has no idea about the market it is advisable to take suggestion from experts so one doesn’t bears a big loss. The trend is when market is functioning or the supply of the company is enough to fulfill the demands of the customers than the company is doing well and its earnings are more and the shares of the company touch the sky which helps the company’s share holders to earn big gains.

Some other share market trends are market top and market bottom.

Top market is not a vivid event but it happens when the person is not aware of it. In this the market suddenly reaches the highest point for sometime. The bottom is the reverse; in this the market down turns there is precedence of bull market observed.

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