Count-Moving Average Indicator

#trend #count 

This indicator tracks how many consecutive days the price has stayed on one side of its 10-day moving average. When price crosses above the average, it starts counting up. When it crosses below, it starts counting down. The count builds during strong trends and resets when the price crosses back, giving you a clear measure of how persistent the current trend is. 

Default period: 10 days (moving average) 

Line behavior: Moves in steps, increasing during sustained trends and resetting on crossovers. Positive values mean price is holding above the average; negative means it’s holding below. 

Useful readings: Large positive counts indicate a strong, sustained uptrend. Large negative counts indicate a strong downtrend. When the count resets after a large reading, it often signals that the trend is losing steam. 

Objective rules: 

– Count rising above zero = price sustaining above moving average 

– Count falling below zero = price sustaining below moving average 

– Count resetting after an extreme reading = potential trend reversal 

– Larger absolute count = stronger trend persistence 

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.