Detrend

Detrend
In forecasting models, the process of removing the effects of accumulating data sets from a trend to show only the absolute changes in values and to allow potential cyclical patterns to be identified. This is done using regression and other statistical techniques.

Different charting services include the use of a detrend price oscillator, which gives traders a method for analyzing shorter-term cyclical patterns. These patterns can then be used to more effectively identify major turning points in the longer-term cycle.


Investment dictionary. . 2012.

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Look at other dictionaries:

  • detrend — To remove the general drift, tendency, or bent of a set of statistical data as related to time. Often accomplished by regressing ( regression) a variable or a time index and perhaps the square of the time index and capturing the residuals. A… …   Financial and business terms

  • detrend — verb to manipulate data to remove long term trends in order to emphasise short term changes …   Wiktionary

  • Detrend — To remove the general drift, tendency or bent of a set of statistical data as related to time. The New York Times Financial Glossary …   Financial and business terms

  • Hodrick-Prescott (HP) Filter — A data smoothing technique that is commonly applied to remove short term fluctuations that are associated with the business cycle, thereby revealing long term trends. The HP filter is used to determine the long term trend of a time series by… …   Investment dictionary

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