Short-Term Trend

Definition ∞ A Short-Term Trend describes the general direction in which the price of an asset is moving over a limited period. This analysis typically focuses on recent price action, often observed over hours, days, or weeks, and is used for tactical trading decisions. Identifying these trends helps traders capitalize on immediate market momentum.
Context ∞ The current discussion around Short-Term Trends in digital asset markets often involves the application of technical analysis indicators such as moving averages, RSI, and MACD. Key debates frequently revolve around the reliability of these indicators in volatile markets, the impact of news events on trend reversals, and the strategies employed to manage risk during short-term price fluctuations. Future developments to watch include the integration of AI-driven pattern recognition for more precise trend identification.