Trend Signals
Last updated
Last updated
The Trend Signals combine tested powerful ideas into a single tool. They are designed to follow trends and reduce noise in the market using low pass filtering methods. There are two types of signals founds in this toolkit; normal and power signals. Power signals are signals with a + in them indicating that the signal may be more likely to play out.
(represented by simple triangles) indicate regular trend-following opportunities.
(triangles with a +) suggest stronger momentum, meaning these signals are more likely to play out successfully.
Green checkmarks signal take-profit points in a long or short trend, based on volatility of the market
Taking a profit does not necessarily mean that the trend is over, but it helps to lock in a profit.
PP labels (Peak Profit) highlight the last significant profit point within a trend, often pinpointing the trend's peak, providing key insight into trend reversals or exits.
Entry: When a green triangle appears, especially a power signal (triangle with a +), it indicates a strong upward momentum. This is an ideal signal to enter a long position.
Exit: The green checkmarks serve as recommended take profit points during the long trend. These marks are calculated based on the strength and direction of the trend. Another exit strategy could be based on the appearance of a Peak Profit (PP) label, signaling the potential trend peak, which often coincides with trend reversals.
Entry: A red triangle signals the start of a short trade. A power signal (with a +) adds further confirmation of strong momentum in the downward direction, providing a higher confidence level.
Exit: During the short trade, red checkmarks mark potential take profit points, suggesting ideal moments to lock in profits. The PP label may appear as well, marking the last peak in profit during the short trend, hinting at an upcoming trend reversal or slowdown.
