Trend Indicators

Trend indicators are technical analysis tools designed to identify and measure the direction, strength, and duration of market trends. They help traders determine whether markets are trending or ranging, and provide signals for trend-following strategies.

Key Characteristics

• Directional Analysis: Identify uptrends, downtrends, or sideways markets
• Trend Strength: Measure the power and conviction behind price movements
• Trend Duration: Assess how long a trend has been in place
• Reversal Signals: Detect potential changes in trend direction

Common Use Cases

1. Trend Following: Enter trades in the direction of the prevailing trend
2. Trend Reversal: Identify potential turning points in market direction
3. Filter Trades: Only take trades aligned with the dominant trend
4. Exit Timing: Determine when trends are weakening or ending