The indicator sends helpful signals during trend reversals but is still prone to the occasional false alarm. It’s good practice to use it along with other indicators to better confirm the signals.

For example, the supertrend indicator can identify a market trend, and the RSI, stochastic oscillator, or average directional index can be employed to predict the strength of that trend.

Choosing Indicators For example, in a market uptrend, trend-following indicators rise and issue "buy" signals while oscillators suggest that the market is overbought and issue "sell" signals.

Trend-following indicators, as the name indicates, are designed to take advantage of trends in the market or an individual stock. Examples include moving averages, the average directional index ...

The SPDR S&P 500 ETF closed above the 200-day moving average this week. This is a widely followed indicator, and for good reasons.

Trend following has become a popular allocation in many investment portfolios, and is one of the largest alternative strategies with over $300 billion in assets under management.

The results tell a concise story. Using the trend indicator to switch between equities and cash, defined as 1-month T-bills, does lower the volatility when compared to a buy-and-hold strategy.

By definition, the MACD "turns two trend-following indicators, moving averages, into a momentum oscillator by subtracting the longer moving average from the shorter moving average." Since the MACD ...

B ollinger Bandwidth is one of the few technical indicators that measures volatility. Most indicators use price and attempt to identify trend changes. Bollinger Bandwidth measures how strong the ...