Trends Representation - Trends Curves and Bars

TrendsMap

A trend on N days is characterized by a N days long moving average : The trend is bullish when this MA is raising up (slope > 0) and bearish when the MA is going down (slope < 0). The trend is declining when the MA is going flat (slope getting weaker).

The trends indicator proposed with TradEdit is the representation of the slope and the impulse of the MA. The trend is directly given by the horizontal bar's colors. - Bull --Declining Bull - Bear - Declining Bear - Unknown (white)

The developed view of the indicator shows : The horizontal zero line. The MA slope as an histogramm - Bull - Bull déclinant - Bear - Bear déclinant - Unknown (white) The MA impulsion (or acceleration) as a gray curve.
The indicator is easy to read : trends are corresponding to green or red blocks in the histogramm. During the first part of the bull trend of the graphic, the impulsion curve and the slope histogramm are on the same side of the zero line. The impulsion and the slope have the same sign and the movement is accelerated (impulsion phase of the trend). In the second part, the impulsion curve is on the other side of the zero line. The impulsion and he slope have opposite signs and the movement is decelerated (decline of the trend). The same phases appear during the bear trend.
Indicator Meaning - Positive slope = green = bull, - Negative slope = red = bear, - Insignificant slope = white = no trend. - Impulsion and slope of the same sign = accelerated or constant trend, - Impulsion and slope of different signs = declining trend.

The two next graphics show the trends indicator applied to Mac Donalds (MA 25)

For the last day of the graphic, the indicator gives a Bull declining trend (bull trend since 1 month, declining since 4 days).

The trends map is the representation of all trends from two to N days. An horizontal trend bar is displayed for each trend. The whole graphic is the TrendsMap. Here is an example of trends map applied to McDonalds from january 2003 to october 2004.
Trend Evolution	Trends evolution during time is given by horizontal lines. For example, reading the line 20 (ST), gives the successive trends on 20 days from beginning of 2003 to october 2004. (graphic hereunder)
Trends of the day		For a selected day, the trends are given reading vertical lines. For example, the last trends for MCD are displayed in the last right column. (left graphic)

Prices and Map The TrendsMap may be displayed as a backimage within the prices graphic. (vertical axis does not fit for trends).

This "backimage display" shows the relation between the "red rising flames" in the map and the prices evolution. For instance, the small red "islet" burning december 18, 2003 is the consequence of the prices fall down from $27 to $23. And this islet climbs until it reaches MA 60. The same kind of scenario occurs at beginning of august 2004. MA 60 seems to be meaningful for MCD. MA 60 surely is a better medium term MA candidat than the previously used MA 50.   How to use curves and trends map is not the subject of this page. Read online articles about this subject.

.