As it was informed by "Market Leader (US)"
What Lies Behind the Classical Notion of a Trend Line?
A trend is a tendency that emerges during a long period of time in economy or any other area marked by a stable situation.
Historically, most traders perceive the trend literally, only as a line in a price chart, overlooking the essence of processes that stand behind the graphical picture. It is balance sheets. Major market players, primarily legal entities (banks, transnational corporations, hedge funds), have to prepare a balance sheet for transactions they made on the trading floor during a certain period of time. Therefore, the time structure for which balance sheets are made is quite a significant factor for understanding trends in any market (for more details, please read the beginning of the article.