Trend Analyzer 【Trend Analyzer】
Trend Analyzer 【Trend Analyzer】
Using moving averages and standard deviation, it classifies market trends into five categories: genuine uptrend, uptrend with pause, none, downtrend with pause, genuine downtrend.
To grasp a trend on a given time frame, it is necessary to define the trend using certain rules.
A representative method is Dow Theory, which considers swings anchored by highs and lows.
There are also methods that view a market as bullish above the 200-day moving average and bearish below it,
and methods that consider the relationship to the Ichimoku Cloud.
In short, there is no single correct answer in the market world, so many different trend definitions exist.
This time, the developed “Trend Analyzer” analyzes the market direction and strength based on a single reference moving average.
Using a short-term moving average (for example, a 5-day line) reveals the short-term trend direction and strength on that time frame, while using the 20-day line reveals a mid-term trend.
“Trend Analyzer” market analysis consists of
1. Direction of the moving average
2. The upper/lower relationship between the moving average and the current price
3. Increases/decreases in the standard deviation of the moving average (in other words, the widening/narrowing of the Bollinger Band ±1σ)
Combined, these three elements classify the market trend into five states: genuine uptrend, uptrend with pause, none, downtrend with pause, genuine downtrend.
“Trend Analyzer” for detailed specifications, please see the link below.
Trend Analyzer 【Trend Analyzer】 Trend analysis with moving averages and standard deviation
As for which moving averages to use in practice, it is good to use commonly employed ones.
Examples include 20SMA, 5SMA, 12EMA, 26EMA, etc.
※ These technical indicators are widely referenced by many traders, so prices tend to reverse near these moving averages or accelerate when they break through, a known characteristic.
Additionally, the “Trend Analyzer” is designed to be used in conjunction with the “Bollinger Band Expanded Version,” and when used together, it is particularly convenient.
↓ This is a limited-time free gift.
FX Survival Blog 30,000 Access Celebration Reader Gift
【Trend Analyzer + Expanded Bollinger Bands Set】Make precise trend judgments to trade with an edge.
↓ This is a trading system using Trend Analyzer and Bollinger Bands Expanded Version.
