Research Results – Short and Long Term Trends

Figure 1: Short term. Average price development for stocks in rising and falling trends in Investtech’s short term technical charts.

Figure 2: Long term. Average price development for stocks in rising and falling trends in Investtech’s long term technical charts.

ppt: percentage points

The charts and table above show that stocks in rising trends have continued upwards, more so than the market, for short, medium long and long term trends. The rise is most significant for the short term and medium long term tends, but also the long term charts show significant positive covariation between rising trend and excess return in three months.

Falling trends give a good indicator of negative excess return in the short, medium long and long term. The connection is clearer for short and medium term, also significant in the long term.

To learn more....

• 
  • Rising trend. Read the theory and see which stocks are in a rising trend now.
• 
  • Falling trend. Read the theory and see which are in a falling trend now.