Rating Trend Strength by Tushar S. Chande
ARTICLE SYNOPSIS ...Rating Trend Strength by Tushar S. Chande
Here's a simple indicator of trend strength. It goes like this: A value of +10 signals an uptrend; a value of -10 signals a downtrend. Stocks & Commodities Contributing Editor Tushar Chande uses this simple rating system to help answer the eternal traders' question: Is the market trending?
As you may have noticed, a number of rather complicated indicators are available to measure trend
strength. None of these indicators, unfortunately, is perfect. You could use J. Welles Wilder's average
directional index (ADX) as an indicator of trend strength, or ...