A market trend is a pattern of rising or falling prices over a specific time period. It can be spotted on charts using technical analysis methods and tools. Traders look for these patterns to determine when it is time to buy or sell, but they should combine this with other kinds of information and studies to create a full trading plan. Depending too much on a chart showing price trends can lead to bad choices and losses.
Secular trends last years to decades and are shaped by structural changes in the economy or demographics. An example is the shift to sustainable energy. Primary trends, on the other hand, are triggered by political and economic events. The COVID-19 pandemic is a prime example of this kind of event.
Analyzing consumer data over time can help brands spot emerging trends and take advantage of them. For example, a surge in interest in digital detoxes might seem like a fad that will die out, but steady growth in this trend over multiple quarters could be an indicator of real potential. Similarly, if venture capitalists are pouring money into a certain sector, that can be an indication of a growing opportunity. This is especially true if the industry has a history of rapid adoption of new technologies. However, companies that fail to adapt to changing consumer demands risk getting left behind. This is what happened to Nokia when they continued to focus on clunky feature phones while Apple and Android focused on touchscreens and software.