Trend Indicators

MACD – Uncover the Convergence and Divergence of Moving Averages

The MACD indicator measures market trends and momentum. It is calculated by subtracting exponential moving averages (EMAs). Traders look out for MACD/signal line crossovers and divergences to identify reliable buy and sell signals. MACD is a lagging indicator, meaning it may miss early signals in trend changes; however, it can quickly respond to rapid rises and falls in price. Convergence …

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How to Quantify Trend Strength With Precision

Some of the most effective trading strategies involve following market trends. But, identifying one can often prove challenging in volatile or fluctuating markets. At this stage, momentum indicators such as the Average Directional Index can come in handy to help traders identify trends. They include positive and negative directional indicators to aid traders in understanding trends better. Trend Strength Trend …

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Trend Intensity Index (TII) – Measuring Trend Strength in Unpredictable Markets

TII is an oscillator used to gauge trend strength. Its values range from 0-100; any values above 50 indicate bull trends while values below 50 indicate bear trends. There are various trading systems based on TII. The most well-known method involves two signal lines at 20% and 80% level; another simpler strategy entails using only the middle line (50%) as …

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The Guppy Multiple Moving Average Decoding Short-Term and Long-Term Trends

The Guppy Multiple Moving Average Decoding Short-Term and Long-Term Trends

Moving averages only give an idea of what has already taken place; therefore, traders need to be able to detect early indicators of trend change in order to profit. Guppy offers a novel way of approaching this problem by pitting moving average ribbons against one another. When short-term MAs pass above long-term ones, buying opportunities arise; when they pass below, …

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Donchian Channels Unveil Highs and Lows to Determine Market Trends

Donchian Channels Unveil Highs and Lows to Determine Market Trends

Donchian Channels are trend-following indicators designed to spot price trends and identify trading opportunities. When breaking above an upper band or breaking below a lower band, traders should enter long positions whereas when breaking below either band they should shorten. Richard Donchian designed his indicator with this purpose in mind and most traders use it accordingly today. Highs Donchian channels …

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Linear Regression Indicator – The Straightforward Trend Detection Method

Linear Regression Indicator - The Straightforward Trend Detection Method

Linear Regression Indicator is an easy-to-use technical analysis tool for creating trading channels. It works according to an advanced mathematical formula based on regression analysis. The indicator uses linear regression trend lines to plot their final values over a set number of bars, showing statistically where price should settle in relation to expected values, making it more responsive than moving …

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TRIX – Smoothing Price Data for Precise Trend and Reversal Insights

TRIX - Smoothing Price Data for Precise Trend and Reversal Insights

TRIX calculates the percentage rate of change of triple exponentially smoothed moving average closing prices over any given timeframe, making it a versatile indicator that can be applied across time frames. Traders frequently look out for bullish or bearish divergences between TRIX and price to predict turning points, something typical of momentum indicators like TRIX and MACD. Trend Indicator The …

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Coppock Curve Unearthing Long-Term Trend Trading Opportunities

Coppock Curve indicators can assist in recognizing long-term trend trading opportunities, and help identify how best to trade those opportunities. They can also be helpful for avoiding bad trades while staying within profitable trades. This indicator was specifically created for monthly charts, appealing to investors and position traders alike. Alternatively, weekly, daily, or intraday charts may also be attached for …

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Keltner Channels – Harnessing Volatility for Trend Analysis

Keltner Channels provide traders with valuable price signals in rapidly moving markets. Similar to Bollinger Bands, this volatility-based envelope indicator helps traders better time their entries and increase winning rates. Developed by Chester Keltner and updated by Linda Raschke, the Keltner Channel utilizes average true range to define volatility bands. It provides an effective method of detecting directional trends as …

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