Trend-Quality Indicator by David Sepiashvili
ARTICLE SYNOPSIS ...Stocks & Commodities V. 22:4 (14-20): Trend-Quality Indicator by David Sepiashvili
Having trouble detecting trends, or estimating their
duration when you do spot one? This indicator comes
to the rescue.
Trend detection and estimation is one of the most important objectives of technical analysis. One common filtering technique that attempts to eliminate stock market noise and extract important trends is smoothing with the help of moving averages. When using moving averages (MAs) to detect a trend in a security's price, the main difficulty is determining the appropriate averaging period.