Average Trend

Creator: Definedge

Default period: 20

In the Average Trend indicator, two lines are plotted below the chart.

1 – The green line represents the Average Trend indicator

2 – Red line represents the Average line of the average trend indicator

The average trend is derived from the trend strength of the single moving average indicator. A rising moving average is considered a bullish sign and a falling moving average is considered a bearish sign. Therefore, the slope of the moving average is an extremely valuable signal. Based on the slope of the moving average, the average trend indicator calculates the strength of the trend.

The rising average trend indicator indicates that the trend is strong and bullish. The falling average trend indicator shows that the trend is bearish.

An average trend indicator above its average line indicates that the price is in a bullish zone. The average trend indicator below its average line indicates that the price is in the bearish zone.

The indicator table value in TradePoint & RZone also provides you with a list of all values of this indicator for any group of stocks. This will allow you to compare the readings of this indicator across different stocks.

This indicator is also available in the System Builder of RZone & TradePoint for all charting methods. Using the system builder, you can develop various strategies based on the different conditions already present in this indicator. Additionally, it can be used with other indicators or price patterns to develop effective trading strategies. For any group of stocks and market segments, you can scan and backtest stocks based on those strategies.

The indicator is applicable to all types of charting. Calculated based on the number of columns on P&F charts, bricks on Renko charts, lines on Line-break charts, candles on Heikin ashi charts, and lines on Kagi charts. While the formula and reading of the indicators remain the same, they become more dynamic on these charts.