Trend Indicators

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 …

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 …

The Aroon Indicator is a momentum indicator designed to detect new trends and their reversals. Comprised of two lines called Aroon Up and Aroon Down, which show how far away from high or low the price is over 25 days. When two lines intersect, it indicates a change in trend direction is imminent. Overbought Tushar Chande first developed the Aroon …

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 …

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 …

Donald Dorsey created the Mass Index as a volatility indicator to pinpoint potential trend reversals and understand widening and contracting trading ranges, which technical analysts often fail to analyze due to their focus on singular price/volume movements. When the mass index reading spikes above 27 and then falls back under 26.5, this could signal that trading may be viable. Trend …

Traders can experiment with Parabolic SAR settings until they find what suits them best. Wilder found that setting their maximum step at 0.02 and acceleration factor (AF) of 0.2 was most suitable for novice traders. A momentum indicator displays on a chart as a series of dots above or below an asset’s price candles, signalling when their position changes and …

Ichimoku cloud is a trend indicator used to spot high probability reversals. Additionally, this tool can assist traders with riding trends successfully and closing trades profitably. The Ichimoku cloud consists of five lines that combine to produce both momentum and trend signals. Let’s take a look at each component of this indicator: What is the Ichimoku Cloud? Ichimoku Cloud is …

Rate of Change Indicator (ROC) is a momentum technical trading tool. It compares current prices with those from a defined number of periods ago and plots this data over or under a fixed Zero Line. ROC can assist traders in detecting divergences, overbought/oversold conditions and centerline crossovers. Furthermore, traders should look out for trend reversal opportunities when the indicator touches …