Lesson 3: Factors Influencing Trends and Cycles

Lesson Overview
Multiple internal and external factors influence how trends and cycles develop.

Economic Influences
Interest rates
Inflation
Economic growth and employment

Fundamental and Technical Drivers
News and earnings
Central bank policies
Technical breakouts and breakdowns

Volume and Liquidity
Higher volume supports trend strength
Low liquidity increases volatility

Key Takeaway
Trends are strengthened or weakened by a combination of economic and market forces.