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More on Trending Bars by kathia |
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ClearStation's software considers a number of different variables before
determining that a stock deserves a trending bar on its price graph. Among
the most important of these variables are EMAs and MACD. Of course, we also
consider other factors: volume, general volatility, and history to name
a few.
In other words, whether the bars appear isn't determined by just one indicator; a combination of events causes them to go up or down. Crossovers are turning points for trends. Whenever a crossover happens, whether it's the EMAs or MACD, it's likely that a trending bar will be triggered. Here are some guidelines to keep in mind:
Sometimes the end of the trending bar signals a definitive break in the
trend. However, it could be pausing (or catching its
breath) before starting another leg of a longer, ongoing trend.
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