The State of the Trend

By: George Krum | Sat, Mar 29, 2014
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Keeping track of the main trend is important for many obvious reasons, one of them being that bull and bear markets have different characteristics and often require the use of a different set of technical analysis tools.

The "trend is your friend" maxim sounds simple enough and appealing, but when it comes to its practical implementation, can cause a lot of frustration and headache. That's why in our newly developed and just released OT Signals web app, we've included a Bull and a Bear Trend Indicator, which allow you to adjust their sensitivity to counter trend rallies and stay longer with the main trend.

For example, the use of the Bull Trend indicator with weekly SPY would have kept you out of all but four of the corrections since 2010:

SPY Weekly Chart
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While the use of the Bear Trend indicator with GLD would have allowed you to avoid multiple whipsaws during the 2010 bear market:

GLD Weekly Chart
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You can also compare the performance of these trend specific indicators with the trend neutral, generic swing indicator, or the BuySellHold indicator included in the package. This side-by-side comparison should help you gain a better appreciation of these new and exclusive tools.

Liquidity and sentiment are some of the indicators not influenced by price and volume action, which help us in deciding whether to adopt a defensive or offensive attitude towards the market. At the end of last week, bulls retained the upper hand in both of them. You can follow these indicators daily on OT Signals as well.



George Krum

Author: George Krum

George Krum

George Krum is the author of the "CIT Dates" blog, and the following apps:

OddsTrader - combines the power of Hurst Channels with proper risk and position size management. For a web version see OT Signals below.

Gann 9 - the only financial app that allows users to effortlessly apply the legendary W.D. Gann's tools and methods for trading (including the Square of 9).

OT Trend - helps you quantify and forecast the seemingly random ebb and flow of stock, index or mutual fund movement.

OT Fibonacci - automates the process of applying Fibonacci numbers, ratios and time series to any security.

OT Seasonal - allows you to perform seasonal analysis on practically any security from around the world, and to build long-term forecasts and models.

OT Pairs - pairs trading, one of the most successful hedge fund trading strategies, is now available on your smart phone.

OT Pivots - combines the power of pivot lines with cycles to provide you with concise technical analysis and powerful trading signals.

OT Signals - a web app accessible from any browser, tablet or pc. It gives buy/sell/hold ratings for any instrument from around the world, and defines the trend and support/resistance levels.

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