How does Investtech identify a trend?

Investtech’s computer systems identify only one trend per graph. This is the qualitatively “best” trend in the chart. A good rising trend meets several of these criteria:

  • The trend channel is long.
  • The trend channel is narrow.
  • The channel rises to a moderate degree (not too steep).
  • The price has several points on or near the support line on the channel floor.
  • The price has several points on or near the resistance line in the channel ceiling.
  • The price has fairly even fluctuations within the channel.
  • The price does not deviate much from an imagined straight line through the price points.
  • Last closing price is near, or within, the trend channel.

 

A medium term price chart has some 80,000 potential trends. All of these are analysed based on the criteria above, and a score is calculated for each potential trend. The trend with the highest score is drawn in Investtech’s chart.

A trend can change between falling, rising and moving sideways from one day to the next. The trend channel gradient will usually be adjusted over time when new closing prices are added. This causes a stock to break out of the trend channel for a few days, and then return to it a few days later, when the trend channel is adjusted again.

 

 


Investtech guarantees neither the entirety nor accuracy of the analyses. Any consequent exposure related to the advice / signals which emerge in the analyses is completely and entirely at the investors own expense and risk. Investtech is not responsible for any loss, either directly or indirectly, which arises as a result of the use of Investtechs analyses. Details of any arising conflicts of interest will always appear in the investment recommendations. Further information about Investtechs analyses can be found here disclaimer. The content provided by Investtech.com is NOT SEC or FSA regulated and is therefore not intended for US or UK consumers.


Investtech guarantees neither the entirety nor accuracy of the analyses. Any consequent exposure related to the advice / signals which emerge in the analyses is completely and entirely at the investors own expense and risk. Investtech is not responsible for any loss, either directly or indirectly, which arises as a result of the use of Investtechs analyses. Details of any arising conflicts of interest will always appear in the investment recommendations. Further information about Investtechs analyses can be found here disclaimer. The content provided by Investtech.com is NOT SEC or FSA regulated and is therefore not intended for US or UK consumers.

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