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10.41 Trendscore

Trendscore by Tushare Chande1 rates the strength of a trend. The calculation is quite simple, today’s close is compared to each close at 11 through 20 days ago and scored +1 for each it’s above and -1 if below.

Trendscore =   if close >= close[11] then +1 else -1
             + if close >= close[12] then +1 else -1
             ...
             + if close >= close[12] then +1 else -1

The result is a rating between +10 or -10 for how many of those past days the current close is above. The high of +10 is when above all those past prices, or -10 when below them all. In a good trend up or down those extremes are often reached.


Footnotes

(1)

Rating Trend Strength, Technical Analysis of Stocks and Commodities magazine, 11:9 (382-386)


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