Which trends are considered the most reliable in trading?

Long-term trends developed slowly from governmental policy affecting interest rates are considered the most reliable in trading because they reflect fundamental changes in the economy and market dynamics. Such trends typically involve a longer time frame, allowing for the absorption of various market influences, economic indicators, and investor sentiment, which helps to confirm the sustainability of the trend.

Governmental policies can have profound effects on interest rates, which subsequently influence borrowing costs, spending, and investment across the economy. These macroeconomic factors tend to create trends in asset prices that persist over time, making them more stable and predictable. Since these trends arise from rooted economic changes rather than immediate market noise or sentiment, they tend to have a stronger basis for trading decisions and can guide investors effectively in establishing positions.

In contrast, short-term trends that fluctuate quickly may not provide enough information to determine a reliable pattern, as they can be more susceptible to market volatility and noise. Trends heavily influenced by market sentiment can be misleading and may not have a strong foundation in underlying economic factors, leading to potential reversals. Random patterns in price movements do not offer any actionable insights, as they lack structure and consistency, making them unreliable for trading strategies. Thus, long-term trends offer a clearer and more dependable framework for traders seeking to make