Trend vs no Trend .pdf - Content
If “the trend is your friend,” what happens when there is no trend? This is more than just a rhetorical question, since markets tend to move sideways much more frequently than they trend.
For example, currency markets are particularly well known for long term trends, which are in turn caused by long-term macro-economic trends, such as interest rate tightening or easing cycles. But even in currency markets, historical analysis reveals that trending periods only account for about 1/3 of price action over time, meaning that about two-thirds of the time there is no trend to catch.