What counts as a trend
Markets trend can be determined on many timeframes. But for trading, we primary use the two: short-term trend / daily trend, and the medium-term trend/ weekly trend. Either uptrend or downtrend, these rules apply to both.
Cross. The 8 EMA crosses above/below the 21 EMA.
Confirmation. Two consecutive full-body candles close above/below the 21 EMA after the cross.
Holding. From there on, price stays above/below the 21 EMA to remain in an uptrend/downtrend.
Anything else is sideways in our book, and sideways means no trade.
Please see the refined version of the Indicator :
Cerlogic Trend Indicator - Version 2.0
Examples below $SMH $SPX
Started using your Cerlogic trend indicator on TV, it’s very helpful.
Q: are you primarily using Daily candles for trend following - or do you use weekly in combination - what’s your rule of thumb ? 🙏
Awesome, thank you :)