TREND INDICATORS

What are Trend Indicators? Trend indicators are technical analysis tools that use price action to recognize price patterns and identify the true direction of the trend.

Trending/Ranging Financial Markets

(i) Trending Market: When the price of a Financial Asset or Market follows a particular trend during a long time period

(ii) Ranging Market: When the price of an asset or a market moves up or down without following a particular long-term trend (Trading within a range formed by an upper and a lower band)

Trend Indicators are Reliable only in Trending Markets

□ If a financial market is trending, the trend indicators can provide considerably reliable trading signals

□ If a financial market is ranging, trend indicators may mislead traders (In the case of a ranging market, traders should better use momentum indicators which are able to identify short-term price movements within the range)

Table: Trend Indicators at ExpertSignal.com

  UTILITY SETTINGS MORE
□ Standard Deviation (SD)
  • Measuring Volatility
  • Confirming Price Reversals
  • 20/21 Periods
 ► Standard Deviation
□ Moving Averages (MAs)
  • Evaluating Trends
  • Spotting Reversals (MA Crossovers)
  • 30-period
  • 50-period
  • 200-period
 ► Moving Averages
□ Parabolic SAR
  • Identifying Trends/Reversals
  • Catching a trend reversal and following it using a trailing stop
  • 2% acceleration factor
  • 20% maximum step
 ► Parabolic SAR

□ Bollinger Bands (BB)
  • Measuring Volatility
  • Identifying Reversals
  • Entry/Exit Triggers
  • 20 Periods SMA
  • 2 SDs
 ► Bollinger Bands
□ Ichimoku Kinko Hyo
  • Evaluating Trends
  • Overbought/Oversold
  • Spot Trends/Reversals
  • Tenkan-Sen (9)
  • Kijun-Sen (26)
  • Senkou Span (52)
 ► Ichimoku
□ Fibonacci Sequence
  • Calculating Support & Resistance Levels
  • 0.618 level
  • 0.382 level
  • 0.236 level
 ► Fibonacci Trading